If you are trying to fix your credit fast, one thing that you need to realize is that the system of credit repair is usually designed to hurt people more than help them. If you happen to fall behind, the system will flag you as a high risk borrower. The reason for this is that the system is usually controlled by banks who will make more money from lending to people with bad credit as compared to those with good credit. However, you need to note that there are some loopholes that can help in your credit repair bid. Use these tips to improve your credit score fast.
A recent report shows that one in every 10 credit reports contain errors. This is an indication that removing errors from your reports is most likely going to improve your score. You need to start by going through your credit report. Check out for those charge offs, late payment and other negative items that doesn’t belong to you. If there is an account that you paid on time but is still listed as unpaid, make sure to raise a dispute with these. Negative items that are more than 7 years should automatically fall off from the report.
Ensure that the right credit lines have been posted in the report
This is definitely among the little-known credit repair tip. There are creditors who will try to make you less desirable to their competitors and will therefore not post your right credit line. When less credit is shown as available, this will have a negative impact on the credit score. When you find that this is happening in the credit score, you can complain and also bring it to their attention. If there are bankruptcies that are supposed to be showing some zero balances, you will need to ensure that they show just that. There are many instances when creditors tend to report a bankruptcy charge off , which is shown as a zero balance until this gets disputed.
Negotiate with lenders/creditors of all negative remarks
If the item that is causing your poor credit score is a one off payment and you are a long term customer with the lender, the creditor will be willing to wipe it off to maintain you as their loyal customer. If you have some serious negative marks such as bills that are overdue, you can negotiate making a payment in exchange of having the item removed. Ensure that you have this agreement in writing. If a bill has already being forwarded to collection, you should only pay it after the creditor has agreed to remove it from the credit report.
Pay revolving credit and credit card to less than 30 percent of the credit line available
The credit bureaus try to ensure that you don’t get overextended and they also want to ensure that you are using the credit. A good balance is always 30% of the available credit line. For instance, if you have been issued with a credit card whose limit is $10,000, you should ensure that you do not use more than $3000. When your balance rises higher than this, make sure to pay them off.
Avoid closing the old credit card accounts
The old and established accounts tend to show you history and tell about your stability as well as paying habits. If you already have an old credit card that you no longer want to use, just cut it up and store it in your drawer even as you maintain your account open.
Don’t apply for new credit
Every time you are applying for new credit, this will result in checking at your credit report. Having a new credit card will not improve your credit score. If a credit account is less than a year old, it will have a negative effect on your credit score. If you are finding it difficult to improve your credit score, you can also even hire the credit repair services.