Top Credit Score Hacks

Many people who are facing debt and credit problems are quick to go to a debt settlement or debt consolidation company. Unknown to many, these companies do not really solve your problems using secret tactics that you cannot do on your own. As a matter of fact, it is super possible to fix your credit all by yourself, using these simple techniques that have been tried and tested to work every time.

Review Your Credit Report

Before anything else, it’s worth checking your own credit report and find out what it has to say. While most credit problems may be due to poor financial decisions, there are those cases when they result from errors such as name misspellings, incorrectly reported late payments, and incorrect entries from other people. If this is the case, you can report the error and have it disputed in order to correct the negative effect it does on your credit rating.

Pay Your Dues on Time

Frequent late payments are one of the major reasons for a credit score drop. To boost your credit in the soonest possible time, make sure to start paying your bills on or before their due dates.

Avoid Carrying Balances

Having huge balances can increase your credit utilisation – the way you use the credit limit that is assigned to a particular account – which in turn can lower your credit rating. Not only that, but carrying balances can also be very expensive over the long haul.

Stop Using Credit – For Now

If you’re struggling to pay off your existing debts, make sure to stop using your credit for the meantime, as this will only make debt repayments even more difficult. Focus on spending below your income and put as much money as you can in reducing your balances.

Do Not Close Old Accounts

While you need to stop taking in more debts when you’re in the midst of debt and credit repair, it doesn’t mean that you have to close all your credit cards to avoid temptation. While it makes sense to close a few if they have become unmanageable, be sure to keep the oldest ones active, so that the length of your credit history will not be affected. Furthermore, be sure never to close credit cards with existing balances. If possible, keep the ones with the lowest interest rates, particularly if there are balances that you cannot pay off in full.

Talk to Your Creditors

Instead of jumping into a debt settlement or debt consolidation scheme, consider talking to your creditors first. As a matter of fact, those companies who promise to manage your debt for you will follow the same route. If you’re going to struggle with your repayments, try negotiating the terms of your loan. For example, you can ask for the repayments to be extended in order to lower your monthly payments.

The important thing here is that you should never try to ignore your lenders, because every report they submit against you can cause further damage to your credit score. You’ll be surprised at how cooperative they can be if you make the effort of contacting them instead of hiding from them.
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