Credit Repair: Key Techniques to Improve Credit Report Scores

Increasing your credit report score is not a difficult proposition. It just takes time and patience. You should not expect to see results overnight. And if you’re approached by someone at a credit repair company who insists they can clean up your credit report in a couple of months, walk away.

If you have plans to buy a new home or new care in the future, now is the time to review your credit report and improve your credit scores. We’ll share some simple, legitimate, and easy-to-apply techniques to help you gradually increase your credit report scores over a period of time.

Review your credit report and make sure your credit report is completely accurate. The first thing you should do is get your credit reports from each of the big three credit reporting agencies. As we cannot stress enough, for accuracy and clarity you should read the Big 3 credit reports, namely Equifax, Experian, and TransUnion. And eliminate all inaccuracies by contacting them, if applicable.

Use your credit cards, make refunds, settle payments regularly. The optimal credit cards to have are 3-6. The more lines of credit you have, the more it hurts your credit score, especially when you’re running up an outstanding unpaid balance that draws big interest on them. Pay outstanding amounts as much as you can, but never pay them off all at once. Do it gradually with a schedule and budget.

Then proceed to repairing your credit card status and moving forward to repairing your credit report scores. The fact that you are making regular payments on your cards and reducing your debt will show up on your credit report and you will get credit for it. In the meantime, please do not use your cards to make additional purchases. Keep in mind that your goal is to pay off your debt.

Well, it may sound unbelievable, but there are people who have been paying cash all along and therefore do not have a good credit score in this regard. No credit report could fathom the fact that you’re a good money manager if you don’t even have a credit card. In this case, apply for a couple of credit cards. Make a small purchase on each card each month and pay off the card each month. These payments will show up on your credit report and start to increase your credit score. In short, you are creating a legitimate image of a responsible credit user.

Pay your bills on time through online banking. This is something that many people realize. When you apply for a bank account, the bank gives you the option to sign up for their online banking services. Accept it and take full advantage of the ease of online banking to pay your bills on time. That is, as your bills come in, you have to schedule them to be paid online.

Plus, you can pre-schedule recurring bill payments, so you no longer have to pay unpaid bills with online banking’s auto-pay feature. There have been cases where the rate at which you pay off your bills accounts for 35 percent of your FICO score, so paying bills is important.

Apply to increase your existing credit limits on your card or cards. To avoid maxing out your credit cards, or even getting close to them, you can choose to request a credit limit increase on your cards. Remember that the goal is to make sure you have additional credit available, so you must have the discipline not to use this additional approved credit. And of course, ask to increase the credit limit one card at a time, and space out the time to avoid asking questions.

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