It is indeed vital to get your credit score as high as you can if you wish to qualify for the best possible loans in the market at the most affordable interest rates. If you’re in the market to qualify for a new line of credit, you have to ensure that you have a spotless and immaculate credit report so that the lender immediately has a good idea about your financial past. But how many of us have this kind of a report? Very few indeed have an impressive credit score. If you wish to increase your credit score by at least 100 points, here are some credit repair tips that you need to take into account.
- Pay down your credit card balance: The amount of credit that you use makes up a huge part of your credit score and hence paying down your credit card balances will definitely have a positive and a drastic effect. The credit scoring model rewards all those who have used less than thirty percent of their credit limit. If you’ve maxed out your cards, pay down in order to increase your score soon.
- Pull out a copy of your credit report: As per reports by FTC, it has been that around 1 among 5 Americans has different kinds of errors on their credit report and 1 in 20 has mistakes that are so serious that this could adversely affect their credit score. This is why it is necessary for people to pull out their credit report time to time and keep checking whether or not there are errors that are pulling down your credit score.
- Fix the errors: Once you come to know that there are many mistakes in your credit report, you should take immediate action to remove them. Write a letter to the credit bureaus and mention the errors, you can even point them out in red so that the bureaus find it easier to edit and sent them back to you.
- Keep making the minimum payments: No matter how many installments you’re paying on your different accounts, don’t forget to keep making the minimum monthly payments on your credit cards as this is the only way to stop hurting your credit score.
So, if you’re someone who wants to improve your credit score for obtaining new lines of credit at an affordable rate, follow the credit repair tips mentioned above.