Are you one of the one-third of Americans that have bad credit? It’s no surprise. The economy is tough, and it’s harder than ever to keep afloat while staying out of debt.
The problem is that being in debt can negatively affect other areas of your life.
The good news is that you have options available if you want to boost your credit score. Follow the five simple credit repair tips below to get started.
1. Pay Off High-Interest Debt First
If you have a lot of debt, you might be tempted to pay on all your accounts equally. The problem with this is that your high-interest accounts will continue charging you more interest than your low-interest ones. That’s why it’s essential to pay off high-interest debt first.
When you start paying down your principal on high-interest debt, you’ll end up paying less money in the long run. This means you’ll end up paying off the loan more quickly.
2. Get a Higher Credit Limit
It might sound counter-intuitive if you’re paying off credit card bills, but getting a higher credit limit is a great way to improve your credit score short term. Credit agencies use your debt-to-credit ratio to help rate your creditworthiness. The lower your credit usage percentage is, the better your score.
You can do this by reaching out to your current credit providers and asking for a rate limit. If you’re on good terms, you’ll have a good chance of having your limits raised.
3. Look for Reporting Errors
While your credit report is usually reliable, there is always the chance that an error will show up on the report. Whether it’s bad reporting from your creditors or a problem with the credit reporting agency, you need to be on the lookout for those errors.
Schedule a time to examine your credit report regularly. Then, if you see any errors with it, you can raise a dispute with the reporting agencies to remove the problem from your report.
4. Keep Old Accounts
One of the factors credit agencies take into account for your credit score is your average account age. This is because they want to know that you’re reliable, and a history of credit proves that. However, your average account age will go down if you decide to close an unused account.
Not using a credit line won’t cost you anything, but it will raise your average account age. When this happens, you’ll see your credit score rise.
5. Get Professional Help
Whether you’re having trouble fixing your credit yourself or need a higher score soon, a credit repair company is a great way to boost your credit score. These companies have unique tricks that work to get your score up quickly.
A company like thecreditagents.com will sit down with you and look at your unique situation. From there, the company you pick will come up with a strategy that will get your score up.
Do Everything You Can to Boost Your Credit Score
While your credit score might not be important to you now, you never know when you’ll need it in the future. So make sure you understand what your score currently is and how to boost your credit score. Doing this now will set you up for an easier time in the future.
If you found the tips above helpful, check out the blog for other great financial advice.