5 Quick Credit Repair Actions You Can Take

In these turbulent economic times, you have lost your job, taken on more debt you can handle, or maybe even lost your home. This unfortunately affected your credit negatively which would affect your ability to get loans in the future. But you want to make this situation better. Although repairing your credit will take time, there are ways that you can start to fix your credit right now. Here are five quick credit repair actions that you can take immediately:

1. Dispute errors on your credit report:

You are allowed one free copy per year via annualcreditreport.com and you should get it. It lists important aspects of your credit history and lets you know where the issues are in your credit. It is the stepping stone for determining where you need to make changes in your financial life. Also, it could list issues, such as collections or late payments, that are incorrect, have been resolved, or should have been removed automatically. These negatively affect your credit score. If you see any discrepancies, take immediate action to correct them. After all, why be penalized for things you didn’t do?

credit records

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2. History repeating:

While you may be having some financial issues right now, maybe you didn’t always have them. If you can dig up some of your older accounts where you always paid the balance on time, start using those to create and maintain prudent financial choices so that you can show potential creditors that you know how to use credit wisely.

3. No more inquiries:

According to Lexington Law, creditors must have your permission to review your personal financial data – but they don’t always adhere to that rule. And the more that businesses inquire about your credit details, the lower your credit score can become. These inquiries are noted in your credit report. So, if you notice this practice occurring, contact your credit bureau to erase those inquiries as soon a possible.

4. Lower your amount of current debt:

By paying down or paying off all past due balances, you can indicate to other creditors that you are becoming a more acceptable risk. You can also talk to creditors in case they agree to reduce or erase a late payment from your record. Also, do not take on any more debt and do not open any new credit cards. These actions can affect your credit score negatively, which is the opposite of what you want. Live on cash, and if you must use a credit card, make the purchases small and essential, and pay them off immediately.

5. Learn to manage your debt:

At some point, your finances became difficult for you to manage. But that doesn’t mean you should throw in the towel! This is a learning opportunity – you need to know how to manage your finances and your debt to prevent these issues from occurring again. If you cannot pay down your debts as much as you’d like, then try this approach – when possible, increase your credit limits while not adding any more debt to your cards. This lowers your credit card utilization rate without you having to do anything other than make a phone call. Then gradually re-learn how to use credit cards safely.

Trying to repair your credit can be a long path, but it is well worth the journey. Although it cannot be fixed immediately, there are steps that you can take to understand the issues quickly and begin the return on the road to recovery. Good luck!

This article was written by Chase Sagum, an author who covers Finance and Online Marketing.

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