Many things can impact your credit score; from getting married, a divorce, the birth of a child, the death of a loved one, change in job status, unforeseen financial restraints, and especially bankruptcy. The reality is that many of us go through changes that affect our credit report scores. The good news is that credit can be rebuilt. Here are a few tips to start repairing your credit score.
- Review your credit report. See where you stand.
- Use your credit cards lightly. You need to keep using them. Revolving credit such as credit cards can greatly increase your credit score if used properly. The main key is to keep your balance low. Credit Bureaus tend to look at the difference between the balance and limit of the card. Try to keep the balance on your card at or below 30% of the credit limit.
- Dispute Charges. If you think a charge on your credit score is false, challenge it. Don’t be scared to stand up for yourself. If you think the charge is false, report it to the Credit Bureau as “not mine”. Let them investigate it.
- Set a reducing your Debt Budget, begin to pay down your balances and pay off your debt, and stick to it. Schedule automatic bill payments for all or just your larger bills to ensure that they get paid and on time. This will also assist you in increasing your credit score.
Paying off and learning how to manage your debt is vital, but keep to your budget and work to pay your balances down. Keep in mind that most payments must be at least 30 days late before they will appear on your credit report. One more tip to finish with, is that if you are struggling to keep yourself within budget, get help. Consider seeking credit counseling or debt consolidation to assist you in the process.
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