How to Repair a Credit Report: Tips to Raise Your Score Now

Good credit is needed for many things - from purchasing a home or vehicle to receiving a low interest rate on different types of loans. Those without a good credit score can really suffer when it comes time to make large purchases. Unfortunately, many people suffer with a low credit score and aren't sure how to change it. The information in this article will show individuals how to raise their credit score, how to repair their credit report, and how to maintain that good or excellent credit score.

Start by Settling Negative Accounts

Nothing will bring a credit score down like negative accounts on the report. These kinds of accounts happen when an individual is slow paying or hasn't paid off a lender for a particular line of credit. Most common negative accounts include credit card bills that haven't been paid, utility services, and medical bills. Individuals should call the lender and discuss a settlement, which is easier than it sounds. Most lenders are willing to settle because they will be able to receive some of their money back rather than none at all. Having these lenders take the negative account off the credit report will help individuals raise their credit scores.

Keep Low Balances

One of the best fast credit report repair tips is to hold a low balance. Ideally, the balance kept on a credit card should be only about 10% of the available balance at any given time. This will help credit lenders see that the individual is responsible and has a good credit to debt ratio. It will also help keep individuals from becoming overwhelmed and unable to pay down their debts. It can be very easy to purchase things with a credit card when money gets tight, but doing this will only harm the individual's credit in the future. Keep balances low to build credit.

Pay More Than the Minimum Payment

It is also important for individuals to pay more than the minimum payment on a debt. By doing so, they reduce the original balance rather than just paying the interest on the loan. When an individual has a ton of debt and lenders see that he or she is only paying down the minimum payment, the individual will look irresponsible and may not be deemed a worthy or good credit risk. By paying more than the minimum payment, individuals will show lenders and the credit bureaus that they take their debts seriously and will stand up to the responsibility of paying them.

Avoid New Credit Lines

Individuals who consistently apply for credit may think they're doing something positive to their credit score, but the truth is that they are most likely damaging it even more. Even individuals with higher scores, who can obtain a lot of credit shouldn't. New credit lines should only be opened when they're needed. This means avoiding store credit lines and simply paying with cash or check - as well as other types of credit lines, like credit cards and loans. By avoiding new credit lines, the individual can keep their credit report positive.

Monitor the Credit Score

One of the best ways of learning how to repair one's credit score is to monitor the credit report. All individuals should keep an eye on their credit, as this is one of the best ways to prevent identity theft or act quickly if it should happen. Oftentimes, credit bureaus make mistakes and place information on the wrong individual's credit report, so monitoring credit can help individuals notice this early as well. There are a number of places to monitor a credit score, but individuals should start by visiting Annual Credit Report to obtain a free copy of their credit report. Each individual is entitled to one per year, and it's easy to make arrangements to see it more often as well.

By using the information above, individuals can learn how to raise their credit score and keep their credit score high so that they will be able to call on their credit when they really need it.