In today’s society, it can be difficult to safeguard your credit score, and once that score begins to drop, it can be even more difficult to know how to repair your credit. That repair will never be an overnight process, but it can be simple nonetheless. We’ve all seen advertisements offering to detail “How to Repair Your Credit Score” if you’ll only pay for specialized counseling.
A few tips and tricks for you
There are a few tips and tricks that a credit counselor might offer, usually these involve educating yourself on how credit reporting works. They often advise about items “falling off’ of your credit after a given time of non-payment. This is true, yet your score remains unaffected. Credit counselors will also suggest sending letter after letter to dispute the validity of the claim. The idea is that eventually one will slip by, and if such a dispute is not confirmed as legitimate within 30 days, the claim is dropped. Again your credit score will still be unaffected.
This will not technically improve your credit score, and therefore shows you little on how to repair your credit. There are ways to patiently observe your credit score improving. The first step is to look for a secured credit card. These are offered by many local banks as well as at larger credit card companies. Usually you can find a card with a limit as low as $200.00-$300.00.
This means you will pay the company this money up-front, and they will then send you what is essentially a prepaid card with all the benefits of a credit card. Use this card wisely. Pay the balance on it monthly.
Credit cards to help your credit rating
You don’t have to use the card frequently, even something as simple as filling your gas tank once a month with the card will suffice. As long as you pay on time, this builds credit. Avoid “soft hits” to your credit. These occur when you apply for a loan, a credit card, a new service, or any time your credit is “checked” by a business.
These are minor hits that barely affect your overall credit rating, but over time they can add up. Lastly, be sure to pay your bills on time, every month. If it has your name on it, paying late will always negatively affect your score. These tips on how to repair your credit are not going to be an instant remedy, but with time and conscious effort, your score can be improved significantly.