If you have poor to bad credit (650 and below), and you’d like to improve your credit score, there are several things you’ll want to get started on right away. But, there are also a few common myths and mistakes to avoid as you improve your credit score. In this article, you’ll find the best advice on how to quickly and safely improve your credit score while avoiding the scams and unethical offers made to people who are looking to improve their credit.
Avoid Credit Repair Companies
Credit repair is one of the fastest ways to quickly improve your credit score. By removing false or incorrect information from your credit score you can immediately see an improvement. If you are too busy or the mistakes on your credit report are too complex for you to resolve on your own, you might consider working with a credit repair company to expedite the process. Unfortunately, there are more than a few companies out there who promise to quickly boost your credit score by “repairing your credit” without even knowing if you have anything on your report that can be repaired. When you are looking to quickly improve your credit score it can be tempting to try anything to get results. However, many of these “Credit Repair” companies will use your lack of knowledge about the credit industry to lead you to believe they can solve a problem which may not exist. Be cautious of scams and predatory business practices when exploring credit repair options. If possible, first obtain a copy of your credit report and see if you can identify mistakes or false entries on your report that you feel could be negatively impacting your credit score. If you have time, learn more about how to file an appeal for your specific issue and see if you can handle the problem yourself. If you are unable to resolve the issue alone, then it may be time to carefully consider professional credit repair assistance.
Get your Free Credit Report
As a consumer, you are entitled to a free credit report every twelve (12) months. All you have to do is go to Annual Credit Report.com, follow the directions and presto, you have a free copy of your credit report from all three credit bureaus; Trans Union, Equifax and Experian. You may be given the opportunity to pay a fee to get your credit scores and you can of course choose to do so, but you don’t have to.
Approach Creditor Directly
There usually isn't a way to get around negative items on your credit report unless you contact the creditor directly. There are many companies that claim they have the ability to do this but really they just contact the creditor and if they don't hear back from them the debt is removed. Once the creditor reports to the credit agency, the negative item will show on your report again.
Borrow Money
Borrow money to raise your credit score. This will help you because you will have to do something to reestablish your credit and make it good again. You should avoid getting into debt all over again, but use your credit cards for everyday purchases that you can pay off immediately, ideally the same day via your online banking.
Get yourself a Line of Credit
Open a revolving line of credit. You should open a credit card or even two of them. If you have credit cards in collections you may have to open a secured credit card. You will have to make a deposit before using the card. This also helps you control spending, but shows you’re committed to making better financial decisions in the future.
Get a Home Loan
Try to get a home loan. Even if you have bad credit, getting a home loan is possible. It will also help your credit once you start making payments. After you have made 3 or 4 payments your credit will get better, but you should make sure you always pay it on time.
Get negative items removed
Repairing your credit without going through an expensive credit repair agency is rather simple if you know what to do. Write to the three credit bureaus and request they remove any negative items. You might have to try this multiple times but, with a little persistence you can get these items removed.
Avoid too good to be true offers
Finding yourself in dire need of credit repair, you may be tempted to accept the offer that promises the best results and appears incredibly easy. Generally, these won’t help you. The quality of service is low and may result in more harm than good. Don't let your desperate situation cause you to make an unwise decision that will only make things worse. Check out every credit repair offer carefully.
File a Complaint
If you have signed up with a credit repair company and realize that you have been scammed, you should immediately file a complaint with the Fair Trade Commission (FTC). If the offer you accepted was deceptive and/or illegal, you may have legal recourse to get back any fees you have paid.
As you can see in this article, getting out of debt does not require you to jump through hoops or take any drastic measures. With a little bit of effort, a whole lot of will power, and accurate information that you just learned, you can attack your bad credit rating and work to repair it.
Resources
1. https://www.credit.com/credit-scores/what-is-a-good-credit-score/
2. https://www.credit.com/credit-repair/
