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Top 10 Fastest Ways to Fix Your Credit Effectively

According to one of the most interesting surveys conducted by the National Foundation for Credit Counseling, people are 30% more embarrassed to reveal their poor credit scores than their excess body weight. Well, jokes apart, the truth is that a bad credit score can lead you to be denied from getting personal loans, acquiring lease benefits or purchasing inventory, etc. Besides, in both cases, if you have a terrible credit score already or even a medium score you must take initiatives to improve them further.

Moreover, many people tend to believe that a few mortgage loan payment or credit card due payments are nothing much of a concern. However, it can not only lead to bad credit scores but also deprive you of acquiring low-interest rates in case of mortgage loan renewal, new loan applications, etc. You can always improve your credit scores with dedicated initiatives, awareness and a bit of cautious credit functioning.

1 Check Your Credit Report

You can access your credit report from three different yet most trustworthy sources namely the TransUnion, Experian, and Equifax. According to a study conducted by the Federal Trade Commission out of the three reports, 1 out of 5 people tends to find out at least one record dispute. Thus it is important to check the reports which can be availed for free once in a year, as per the Fair Credit Reporting Act. You can easily access these reports from the government operated site AnnualCreditReport.com.

2 Dispute Errors

Many times you can improve your credit score just by disputing a credit error. Like for example, if you have any unsettled financial case between your insurance service and the payee about any insurance or payments, you can take the initiative to resolve on your own. If you have paid the payee yourself and have chosen to fight a case with the insurance company, you can settle down the dispute by yourself from any of the credit bureau portals.

3 Pay Bills on Time

Late payments of loans, mortgage loans, and credit card dues can be excessively bad for your credit report. Like for instance, many people tend to ignore their credit card dues or neglect loan installments for months until the sum amount comes to a huge count. This totality creates a huge negative impact on your credit score and can even bar you from getting lower interest rates on your next loan.

4 Get a Few Credit Cards

Keeping the credit balance on your credit cards helps you to maintain a balance on your credits. In such cases, you can also distribute your financial requirements amongst 3 to 4 credit cards and essentially keep the balance limit of each card lower than the maximum credit limit.

5 Check Limits

Exceeding the credit limits of your credit card can be certainly unhealthy for your credit score. Thus you always need to keep a check on each of your cards’ limit and your current credit on the card. You can also request the provider to alert you anytime if you bump out the limit.

6 Dispute Incorrect late Payment records

The payment history of loans, credit card payments, mortgage payments, etc. play a vital role in determining your credit score. You can dispute any incorrect entry of late payment by the mortgage provider or a missed out entry by credit card department.

7 Authorized User

Seek for any relative or friend’s help and ask them to add you as an authorized user of credit cards. However, it is a risky affair for those taking chances to add you up since later on they would be liable for any charges, late payments, faulty escapes that you make. Thus, it is indeed true that you might have to struggle a lot to get one to add you. If you have fair timely payment record on a long track record, there are chances.

8 Good Histories are Good Hopes

Your credit score also depends and takes into account the credit history you share with each creditor. You might be doubtful about keeping back your unused credit card, which has been with you for a long time but not used. However, a long track record of having a credit account with any creditor with no negative footprints of late payments, being a defaulter, exceeding limits, etc. counts a lot when your credit score is recorded.

  • This makes it entirely logical and rather a positive step not to close any credit accounts even if they are unused for a long term.
  • Having multiple credit accounts which may be completely inactive regarding usage helps you a lot when it comes to your credit score. Just keep the cards safe somewhere, and they will help you in the long run with your credit score.

9 Get Accounts Separated after Separation

It is a common thing that couples open joint accounts or even co-sign for various financial investments, loans, etc. However, it is a known fact that in such cases the credit scores of the one will affect the spouse. But once you get separated, even then when your legal relation comes to an end the financial obligations do clinging in. Therefore, in cases of divorce, it is always advisable even to get your financial obligations, accounts, loans, etc. separated as far as possible to rescue yourself from the obligations of negative credit score due to your ex-spouse.

10 Settle Collection Accounts

Many times it’s possible to ask your creditor to stop reporting the credit bureau about your debts against full payment of the debt. This is rather a better option instead of transferring your debt amount to new accounts every time for one or another reason. However, each creditor does share some terms of the agreement with the credit bureau as well as the debtor. Thus, allowing you to pay all your debts at a time means the creditor would be a non-starter, but there is nothing wrong in trying since many creditors do allow you to pay off all debts.

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