Credit Repair Advice: How to Repair Your Credit in 5 Simple Steps

The all-powerful credit score. In our modern world, it seems that many of our financial options revolve around that seemingly innocuous little number. Without good credit or at least a fair score, it can be difficult to get a loan for important things like a house or a car.

The trouble is, for about a third of Americans that number is not as high as they’d like.

Are you one of that struggling third? There’s hope for you! Just check out these 5 tips for credit repair. It may take a little time, but with perseverance, you can see that score climb.

Let’s dive in!

1. Check Your Report

First off, you need to check your report. That can be intimidating if you really don’t want to see what’s on your report. But take a deep breath and dive in.

On your report, you’ll find out what your score actually is. Plus you get detailed information of all your credit activity. Carefully review it for inaccuracies. There may be negative information pulling down your credit score that isn’t even correct.

2. Pay on Time

Never, ever, miss a payment. This is 35% of the formula that determines your score.

If you’ve found that you are bad about remembering to make your payments, figure out a different method. Set up email notifications, reminders in your phone, automatic payments–do whatever you have to do to ensure you don’t miss a payment.

3. Lower Your Credit Utilization

Another hefty part of the credit score formula is credit utilization. This means how much credit you use as opposed to how much credit you have available.

For example, let’s say you have $1000 of credit available. But you only are using $100. Thus, your credit utilization is 10%. Get that ratio under 30% and you’ll see a spike in your credit score.

4. Become An Authorized User

A quick tip to see a bump in your credit score is to become an authorized user on some else’s credit card account. Of course, that someone else should have a good payment history.

When you do this, their card shows up on your credit report. This adds the benefit of their good credit to your score.

5. Study Your Spending Habits

Though these steps sound simple, you may find it difficult. For some folks, getting that credit utilization ratio down is rather challenging. If you find yourself in that category you’ll want to study your spending habits.

You might be paying your credit card bill on time every month. But if you’re only making the minimum payment, it’s going to be a long while before you see much of a change. This is especially true if you’re still using your card and racking up more expenses.

Analyze your spending habits and determine where you can cut back for a while until your credit repair efforts start taking effect.

Credit Repair Is Simple

In theory, it’s true that credit repair is simple. It’s simply a matter of following these steps and having patience.

In practice, it’s much more difficult.

Professional credit repair can help get your credit score where you want it. Feel free to check out our services today!