5 Easy Tricks That Will Help Fix Credit
Let’s debunk the myth about bad credit.A lot of people think that fixing your credit score is a question of time, changing lifestyle, sticking to a tight budget and eventually paying off your debt in full. This formula works in most of the cases. But in reality there are far easier and faster ways to raise credit score. Simple credit tricks can help fix credit and boost credit score with more than a hundred points within a few months.
A smart approach to fixing credit includes:
1 Paying off late payments first. Nothing affects your credit more adversely than past due and late payments. That’s why they should be your priority when trying to fix credit.
2 Managing your level of debt and transferring balance when necessary. Let’s say you have two credit cards with 2,000 $ limit each. The balance on one of your cards is 0 $ and the other one is 1200 $. Such balance will work against your credit score. Ideally credit balance should be kept below 30% of your credit limit. In this case this is less that 600 $ on each card. What you should do is transfer 600 $ to the card with 0 balance, so this way both cards have balances that fall below the dangerous zone.
3 Do not close old credit cards. The length of credit history is important when credit bureaus determine your credit score. Closing old cards that you are no longer using could result in “erasing” a part of your credit history. Less credit history means less credibility according to credit report bureaus.
4 Paying off collections in full may not help your credit score. It is a paradox, but it can actually lower your credit score. When payment is made on a collection account, collection agencies update credit bureaus to reflect the account status as “paid collection”. In order to clear the collections altogether from your record, you have to call the collection agency prior to making payments and explain that you will pay off your debt only if they withdraw the collection from the credit bureau reports
5 Take a good look at your credit report. If there are any errors or inaccurate information, dispute them immediately
These are just a few credit tips that can help fix credit and raise score fast. Of course there are many other tricks and well kept credit secrets that can produce amazing results in no time
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