Growing up, the elders rarely expressed to us just how important maintaining a good credit score is. As generations got older, they soon discovered that living the life they have always desired was nearly impossible without an accepted credit score.
Luckily for us all, once credit scores are in complete shambles, we have total control for them to make a comeback to safe standings. One thing that is nearly impossible to avoid in life is the collection of debt. Although there are rare cases, most citizens accumulate debt in some way, shape or form.
Check out these 10 ways to fix your credit in 2017
Pay Off Debts
From student loans, credit cards, car payments, or mortgage, debt is for sure to creep upon anyone who collects currency and has bills to pay. According to the balance.com, the amount of debt a person carries is 30% of their credit score. Paying off debt will seemingly increase your credit score a few points at a time.
Pay Bills On Time: Paying bills on time is a perfect method to restore a credit score and pull it back into good standings. Paying bills late notifies the credit anchors that late bill payers are bad borrowers and in return beats a credit score up pretty bad. Paying bills in a timely manner will have your credit score booming in no time.
Pay Bills Twice A Month: Paying bills twice a month could have one’s credit score climbing up the hill quicker than expected. One payment is enough but an additional payment shows extreme dedication to repairing credit.
Eliminate Past Due Balances: Want to set off the alarm for a credit score? Try leaving a balance unpaid allowing it to be proclaimed as “Past Due.” Payment history is a huge portion of credit history and a bunch of past due balances is sure to make the credit frisbee land in the poor zone. Don’t ever let your payments fall far behind; pay accordingly.
Stop Applying For Credit Applications: While you’re struggling credit score is down in the dumps, it’s probably best to stop applying for additional credit. Not only will applications likely be declined given a low credit score but they may even decrease a credit score. Until debt is paid and improvement is seen upon the credit score, it’s best to put a halt to applying for additional credit; you are only hurting yourself in the short and long run.
Leave Some Accounts Open: A common misconception in the realms of credit is to pay off a debt and completely close the account. In some cases, closing an account can affect your credit score – especially the closure of a credit card. Leaving credit accounts open can benefit your credit score and provide proof that monthly payments are being made, which is always a plus in credit restoration.
Check Your Credit Report For Errors: Check, double check and triple check! Credit reports often are filled with errors and the only way to find out is to do a thorough check for errors. The people behind the world of credit reporting are not mistake free. Check everything!
If a credit score is already in the low ranks, it is probably best to pay cash for purchases instead of using credit. More than likely if a person is attempting to restore their credit then they have accumulated a number of high repayment balances which should shift their focus into repayment mode instead of credit utilization for purchases. Paying cash will eliminate the chances of decreasing a credit score even more.
Converse With Creditors
Skipping out on payments is never a good idea but neither is leaving creditors clueless as to way payments are not being made. A creditors financial situation may not be the same as it once was when they acquired a specific credit account. Conversing with the creditor about your situation could result in reduced payments or some sort of payment option which in return helps your credit score.
Make A Plan & Stick To It
A person with bad credit could have all of the methods for credit repair but without making a plan and sticking to it, they will likely find themselves in the same spot.