How Long Does It Take to Rebuild a Credit Score?
Are you trying to get back on your feet? Are you worried about accounts in collections and potential debt collectors? Fair Credit can provide you with excellent professional service regarding credit report errors, litigation, and debt collocation issues you might need guidance on.
If you need help improving your credit score, try following these simple strategies set out below, or make use of the FREE consultation by Fair Credit..
How To Build Good Credit
Most people don’t have one score; they have many, and the scores are constantly changing. Scores differ based on the applied scoring formula, and which of the three credit bureaus supplied the information used to calculate the score
Building good credit is not always difficult. There are many ways in which one can get negative, or inaccurate information removed from their credit report, as well as ways in which one can focus on increasing their credit by implementing certain strategies, as set out below:
Check Your Credit Reports
Use your free yearly credit report check from each of the bureaus, and make sure to go through your credit report regularly, as it changes over time. Speak to an expert, if you do not understand how to spot inaccuracies, or query a problem.
Pay Your Bills On Time
Pay them in full if possible. Otherwise, make sure that you have set reminders to pay your monthly installments timeously. You can activate auto-payment through your bank’s services, or sign up for email alerts from your credit company.
Pay Your Overdue Bills
A missing payment can lower your score by as much as 100 points. If you have missed a payment by a whole billing cycle, you can write a letter to your creditor to request forgiveness for the late payment. Note that this will only work in certain cases, and it will not be accepted more than a handful of times.
Keep Your Balances Low
It is recommended that you keep your balance at or below 10 percent on each line of credit to improve your credit score.
Pay Off Your Debt Rather Than Transferring It To Pay A Lower Interest Rate.
According to FICO, paying your overall debt is one of the most effective ways to improve your score.
Have A Mix Of Credit Types
Variety is the spice of life – having a mix of credit types including both installment loans and credit cards shows that you can manage a diverse profile.
Bottom Line
Be responsible with your accounts. Manage them by setting reminders, regularly checking your credit reports, and make sure that accounts (especially medical) have not gone to collections without proper notice as this can harm your score. Stay on top of your game, and once you have achieved a good credit score, aim to maintain it by finding the best options available to you.
