Whether you have suffered financial distress and resulting credit score problems, recently exited an Ohio bankruptcy, or simply want to improve your score for an upcoming loan application there are some sure-fire ways to boost your credit score. The trick is strategic action and patience. It takes time to turn a bad score right side up, but is possible with these proven credit repair strategies.
Proven Credit Repair Strategies
The first thing you want to do is check your full credit report and examine it closely. Look for inaccuracies or misinformation that might be listed. If you find a mistake on your credit report or a mark you think shouldn’t be there, dispute it with each of the credit reporting bureaus.
To do this, write a detailed letter of the discrepancy and why you think it should be removed from your credit report. Provide your contact information on the bottom of the letter and mail it directly to the credit bureau. Stay in contact with the bureau and call to check on the status of your report to determine if they agree to grant your request.
Once your credit report is accurate look for negative marks such as flags for late payments, accounts that are in poor standing and accounts with excessive balances. These are the areas in which you want to work to improve. For accounts with late payments, set up an automatic minimum payment transaction with the creditor to prevent any late payments in the future. Once you are sure your minimum is deducted automatically each month, you can always pay extra to get the balance down faster by calling in at any time.
Timely payments will also bring an account in poor standing into better standing. If your account is in poor standing due to past due amount, pay the past due along with your minimum for the month immediately. Sometimes people unknowingly carry a past due amount for months and never know it because they end up paying just enough to stay out of collections but have a long running past due amount.
When targeting excessive balances, be sure to always pay more than the minimum automatically being deducted each month. Attack one balance at a time paying as much as you can spare each month until the balance is paid off or, at minimum, less than 30% of the total available credit line. For example, if you have a credit line of $10,000, your total debt balance should not exceed $3,000. Keeping your balance to limit ratio low will boost your score quickly.
Last, keep zero balance accounts open. Whether you keep an existing, paid off account open or apply for a new account and let it sit with a zero balance, having more available lines of credit can improve your score.