Simple Steps To Repairing Your Credit
CMS Mortgage Solutions Inc.
CMS Mortgage Solutions Inc.
Published on November 17, 2022

Simple Steps To Repairing Your Credit

Your credit score is one of the most important numbers in your life. It can affect your ability to get a loan, rent an apartment, or even get a job. That’s why it’s important to make sure your credit score is as high as possible.

There are a number of things you can do to repair your credit score. One of the best ways to improve your score is to make sure all the information on your credit report is correct and up-to-date. You should also make sure to pay your bills on time and keep your credit utilization low. You can also repair your credit score by increasing your credit limit and adding more positive information to your credit report.

1. Check your credit report for errors

One of the first things you should do if you want to repair your credit score is to check your credit report for errors. You’re entitled to one free copy of your credit report from each of the three major credit bureaus every year. You can request your report by going to AnnualCreditReport.com.

2. Pay your bills on time

Paying your bills on time is one of the best ways to improve your credit score. Payment history is one of the biggest factors that goes into determining your score. So, if you’ve been paying your bills late, it’s important to start paying them on time.

Here are a few tips to help you pay your bills on time:

  • Make a budget and stick to it
If you want to be able to pay your bills on time, you need to make a budget and stick to it. Figure out how much money you have each month and allocate it to each of your bills. This will help ensure that you always have enough money to pay your bills on time.
  • Set up automatic payments
If you find it difficult to remember to pay your bills on time, you can set up automatic payments. This will ensure that your bills are always paid on time.
  • Get organized
One of the best ways to make sure you’re able to pay your bills on time is to get organized. Keep all of your bills in one place and make a list of when each bill is due. This will help make sure you never miss a payment.

3. Keep your credit utilization low

Credit utilization is the percentage of your credit limit that you’re using. For example, if you have a credit limit of $1,000 and you’re using $500 of it, your credit utilization is 50%.

Ideally, you should keep your credit utilization below 30%. So, if you’re using more than 30% of your credit limit, you should try to pay down your balances.

4. Increase your credit limit

One way to lower your credit utilization is to increase your credit limits. This can be a good idea even if you don’t plan on using any additional credit. That’s because it will lower the percentage of your credit limit that you’re using, which can repair your credit score.

There are a few ways to increase your credit limit:

  • Request a credit limit increase from your credit card issuer
If you have a good credit score and you’ve been using your credit card responsibly, you may be able to request a credit limit increase from your issuer. Just contact customer service and ask for a higher limit.
  • Ask for a higher limit from your bank
If you have a relationship with your bank, you may be able to ask for a higher limit. Just call customer service and explain that you’d like a higher limit. They may or may not be able to help you.
  • Use a credit-builder loan
If you’re not able to get a higher limit from your bank or credit card issuer, you can try getting a credit-builder loan. This is a loan designed specifically for people with bad or no credit. The loan will be deposited into a savings account, and you’ll be responsible for making monthly payments on the loan. Once you’ve made all of the payments, you’ll receive the loan amount plus interest.

5. Add positive information to your credit report

Another way to repair your credit score is to add positive information to your credit report. This can include things like making all of your payments on time or becoming an authorized user on someone else’s account.

Making these five steps part of your financial routine can go a long way towards repairing your credit score. And a higher credit score can save you money by making it easier to get approved for loans and get lower interest rates.
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CMS Mortgage Solutions Inc.
CMS Mortgage Solutions Inc. Virginia Beach
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(757) 558-2603