Living with bad credit makes things difficult, impossible, and expensive. Credit repair is important to help you save money on insurance, loans, and credit cards. It also opens up new employment opportunities and promotions.
Get a Credit Coattail
A credit coattail is riding on someone who you know has a good credit score. It might be a spouse, a family member, or a colleague. The person should agree to make you an authorized user. It should be a responsible and a person you trust You will benefit from his/her available credit and credit payment history. Get a good credit card friend, because if there is a late or no payment it will reflect in your record too.
Pay Bills on Time
Making payments on time is a major factor in your credit score. Show them you can consistently pay up on time. Prioritize on which bills to pay first for example cell providers are likely not to report late payments, unlike mortgage lenders who will report immediately. In your credit report, make payments for the listed accounts and have a plan to pay later the ones that are not listed. Set up an automatic one payment for the minimum amount due to help you avoid missing a payment. Get a counselor to negotiate lower payments and interest rates and have a card issuer bring your accounts current.
Dispute Errors
Some errors can create a bad credit report, it is wise to go through your report regularly. When you come across errors however small they are, highlight and make a copy of the report. Next, gather all your supporting documents such as bank statements and payment receipts.
Then write a letter to the credit reporting agency explaining the mistake with copies of the report and payment copies. You will get a response within 30 days and if they find the error valid they will correct your credit report.
Get Another Credit Card Account
You aim to improve your credit score and get access to more cash. Your credit limit will increase by that credit limit. Try and get an account that doesn’t have annual charges or with little charges. Opening another account shouldn’t be an option if you will repeat the old habit of running up a balance.
If you are denied a major credit card try and apply for a retail store credit card. Retail stores help approve applicants with bad or limited credit history. Consider getting a secured credit card which only requires you to make a security deposit to get a credit limit. A secured credit card can be used in more places compared to a retail credit card.