Credit Score Repair 101
Today I’m going to be talking about credit score repair because recently I’ve got a couple of questions on how/what do I do? And What are the steps? I’m going to run through a couple of little points and details that you can use to improve your own credit score.
#1. Always pay your bills on time
It’s kind of obvious but some people don’t know utility bills won’t report on your credit bureaus like cable and electricity, although some cell phone bills will report late payments to your credit agencies so do not miss your cell phone bill!
#2. Try to pay your bills in full on the due date.
Don’t do partial payments, like on credit card, try to pay on the due date fully. Do not miss payments at least.
#3. Try to pay off your debts as quickly as possible.
Pretty simple. So if you’re going to use your credit card use a hundred bucks, then trying to pay off the 100 bucks within that week, if you can. If you can’t, do the minimum payment. Do not miss payments! (Yes, I know it contradicts #2…)
#4. Do not max your credit card.
That’s is huge. Don’t even go close that credit card limit. The basic rule of thumb, don’t go more than half. So, if you have a $2000 limit don’t go more than 1000 because that will impact your credit score.
#5. Reduce the number of credit applications.
Do not just give out your social insurance number to any person to apply for credit cards because when lenders/potential lenders look at your credit score it will have a negative effect on your score. You’re looking at your own credit score it will not have a negative effect. But when lenders pull your credit that will have a negative effect on your credit score. So, the more applications you make the lower your credit scores are going to go. Not by a lot but if you do many it’s going to hurt your credit score.
#6. Make sure you have a credit history.
A lot of people have bad credit scores because they don’t have a credit history. They may just have a phone bill on there.They either have a bad credit score because they have no credit history or they have a fantastic credit score because they have a little credit history (aka one line of credit). So, make sure you have a credit history. Make sure you have some sort of a history.
Those are the main points. Honestly, it’s that simple for credit scores. It’s nothing too crazy nothing too drastic.
Also, no loopholes exist for credit companies. There are no tricks. There’s nothing like that no credit company can do anything you can do yourself. Everything they’re going to tell you is pretty much what I just told you. There is nothing that they can do, in Canada at least, that you can’t-do. The only way to rectify poor credit is literally by adopting sound credit practices for an extended period of time. No company can be like “hey, pay us three grand and we’ll get rid of stuff” that simply doesn’t happen like that.
Those are the basics of credit reports and ways to bring back your credit/fix your credit.
Keep good practices to keep good credit!