How to fix your own Credit Score

Has your credit score dropped down tremendously? Do you need your score to look good for any future credits or loans that you want to apply for? Don’t worry, while having a bad credit score is not good, you can easily fix the credit score by following these steps:

Determine your Credit Score and analyze it

Start by getting your credit report from the credit bureaus and then analyze the causes that are hurting your credit score. Make sure you make a thorough sweep of your credit report and don’t skip a single section on the report. Make sure your personal details are correct and check where you have caused the most damage to your credit score.

Dispute any inaccuracy

If you find that there is any information which is incorrect on your credit report, then you have a right to dispute that information. So, if there was some credit payment which you made on time but it reflects differently on your credit report, you can easily dispute it and get it removed from your report.

For this, you would need to write a letter to the Credit Bureau Company stating the incorrect information and sending the copy of proofs for them to refer to.

The Credit Bureau Company will, in turn, contact the creditor and if the creditor isn’t able to provide sufficient proofs for the data, the information will be removed from your report.

Factors that affect your Credit Score

Stop applying for loans or credits

Another important step in fixing your credit score requires you to avoid applying for loans or credits. This is because every time you apply for a loan, an inquiry is made of your credit score which is known as a hard inquiry and this gets added to your credit report which decreases your credit score further. So, avoid applying for too many loans together and better to stay away from it until you have a reasonable credit score.

Pay your bills on time

One of the most important steps in fixing your own Credit Score involves paying all your bills on time. This means you have to clear all your previous dues and make sure you pay your electricity bill, parking tickets, etc. on time from now on. If you have too many unpaid bills, it gets added to your credit report and affects your credit score severely.

pay your own bills on time

Pay your credit card payments on time

Make sure that you always pay your credit card bills on time. If you delay the payment, not only you will have to pay an interest the next month, it also severely damages your credit score. Also, ensure that your credit card limit low as this will help in improving your score. Keep the limit to less than 33% which is the ideal credit limit.

Avoid overspending

One of the best ways to fix your credit score is to stop shopping for a while and only buy stuff which is useful to you. Don’t use your credit cards for some time and you will see that your credit score will improve drastically after some time.

Avoid overspending