Repairing credit can be a challenge to most people. The first place to start is by knowing what is on your credit report and what items should be removed. Inaccurate items on your credit reports can stop you from getting a mortgage loan, credit cards and even a job.
Checking Credit Reports
Request a written copy of your credit report from all three of the major credit reporting agencies. Check every item on the report carefully for errors. Your credit reports will give you all the data that is used to calculate your credit score. Check for any late payments listed on your reports that are inaccurate. Make sure all the amounts on your accounts that you still owe are correct. If you find errors of inaccurate late payments or accounts with wrong balances, dispute these items with all the credit bureaus.
Stop Using Your Credit Cards
You need to reduce the amount of debt that you owe to creditors. Do not close unused or paid up credit cards. Put them in the drawer and leave them there until your credit is repaired. Closing them will give creditors the wrong information about your credit ability.
Setup a Payment Schedule
Work with your bank and see if they offer payment reminders that you can receive by text or email. This will help you to make your payments on time. Your score is determined on how you manage your money and if you make your payments on time. You can set up payments through the bank, but this will only pay the minimum amount. What you want to do is pay more than the minimum each month on as many accounts as you can afford. Pay more each month on the highest interest account first. Pay off your highest interest account first and then start paying more on the other accounts.
Make all Accounts Current
If you have missed any payments on credit accounts, make them current as soon as possible. Stay up to date and on time with all accounts. After paying your accounts on time for a while, you will see an improvement in your FICO Score. The positive information over time on your credit report will show that you are managing your finances.
Simple Tips to Remember
Keep the balances low on all your credit cards. Do not move debt around from one credit card to another. Pay off the debt instead. Do not open up any new credit cards just to have more credit available. This will lower your credit score in most cases.