Managing your finances isn’t always easy. A string of bad luck can affect your financial status for years to come. Your credit score determines which loans you can take, your ability to get a credit card, and more. Repairing your credit score can take a while, and if you’ve already struggled with improving your financial situation, improving your credit might leave you feeling frustrated and confused. Fortunately, The Mortgage House, LLC. is here to help. As one of Fayetteville’s leading credit repair companies, we’ve put together this quick list of easy ways to repair your credit.
Examine Your Credit Reports
Your credit is reported by several institutions, and you can request a free copy of those reports every year. TransUnion, Equifax, and Experian are the major credit reporters, so simply ask them for a copy of your credit history. Some companies offer free credit scores all year round, and some credit cards do the same. However, these scores may not be as accurate as the ones available from the major firms listed above. You’ll want to get a report pulled from each of them to make sure that you have a complete picture of your credit history.
On your credit report, you’ll find the standard information like your identifying details. You’ll also find a variety of creditor information, like payment history, credit utilization, length of credit history, types of credit, and credit inquiries. All of these influence how your score is calculated.
Feel Free To Dispute Any Negative Marks
You can dispute some of the notes and marks on your report that negatively affect your credit score. Review your report carefully, and look for credit cards, debts, and big purchases. If any of them seem out of place, it’s good to take note of it. Back up your disputes with information from your bank, or from receipts. You can then file a dispute with any of the credit reporters, usually via letter, but many now allow you to file a dispute online. Getting these negative marks removed will help to boost your credit score, making it easier for you to get things like mortgage loans.
Take A Long Look At Your Spending Habits
One of the easiest ways to damage your credit score is to spend beyond your means. With high credit limit cards and tempting payment plans on luxury goods, it’s not surprising that some can max out a credit card without even blinking. To help restore your credit, curtail your spending, and keep track of where your money is going. Build a budget, and do your best to pay all of your bills on time. If possible, you should try and start paying down your debt at the same time, starting with whatever source of debt has the highest interest rates. While you’re examining your spending habits, it’s important that you avoid applying for new lines of credit, as this can impact your credit score even further.
Don’t Fear Your Credit Cards
It’s easy to link your current credit predicament back to your credit cards, but they can also be a source of financial security instead of only sorrows. Your credit score may have a series of negative marks from the misuse of your credit card. You can dilute their impact by using your credit card in a responsible manner for a period of time. By using a secured credit card, you can help to rebuild your credit. The security deposit behind the secured card helps to keep you from going over your spending limit. By spending less than the max amount on the card and repaying it on time every month, you’ll see your credit score start to rise.
Following these steps build a great foundation for not only repairing your credit score but also improving your finances in the long-term. But it’s important to remember that a credit score can’t be repaired overnight. It does take time, and you might have to wait months, or even years to see any results. It’s best to stick with a system that keeps you financially secure, without adding to your debts.
The Mortgage House, LLC. is a credit repair company in Fayetteville. We can help you improve your credit score so you can get access to valuable financial resources like home and construction loans. Contact us today to find out how we can help.