Getting on the Path of Credit Repair

Before taking any steps towards credit repair, you must understand what your credit scores are like and where you stand currently. Your credit score is generally made out of how well you use your credit and pay your credit cards and loans, the types of credit you have and for how long.

Get a credit card, if you don’t already have one. A credit card will help you build your credit. If you are unable to get a regular one, look into getting a secure credit card (where the bank will issue you a credit with a limit equivalent to a deposit you make).

Pay existing credit card debt or bring it down as much as you can. Bringing the balance on your card to 30% would be a good starting point. Start by paying off the cards with the highest balance and work from there. As you decrease your balance, you can start to improve your credit.

Use older credit cards if you had better rating with, so that those accounts don’t close and lose their weight in the evaluation.

Dispute old and unjust collection charges with the credit bureau. The older the charge and the smaller the value is, the less likely it is to be verified by the agency.

Finally, do not ask for a lower credit limit or consolidate all your accounts into one account with a huge balance. 

Remember, credit rating is very important, so if you feel like you don’t have a good credit, look into credit repair options. It is never too early or late to do so. Once you’ve fixed your rating, make sure you follow those tips on what you need to maintain good credit.