Repairing bad credit is not impossible, as some may tell you. No matter how low the credit score is, there are always some things that you can do in order to increase values. However, this is not going to happen overnight. There is no real quick fix to low credit score. All the quick fix tips you find on the internet are most likely going to make your credit score lower. If you want to rebuild your credit, you need to properly manage the situation, in a completely responsible way. If you need money fast, your only option is most likely getting a loan with bad credit.
The good news is there are some things to do right now. Always consider the following.
Check The Credit Report
This is always the first step you need to do. Do request the free copy of the credit report from all the major agencies. You want to check all the entries so you can find some potential errors. The credit report is going to include data utilized to calculate credit score. Errors might be present. You want to specifically look for late payments that are incorrectly listed for accounts and amounts owed for all the open accounts. Such information has to be correct or it will have a big impact on credit score. When errors are located, work with a credit bureau to dispute them.
Use Payment Reminders
One of the most important contributing factors for the credit score is making credit payments on time. There are banks that will offer some payment reminders through an online banking portal. This means you receive a text message or an email to know that a payment will be due at a specific date. While this is almost always included, it is not a guarantee. It is a really good idea to use automatic payments through the loan providers and credit card providers. This will allow payments to automatically be debited from the bank account at a set date. That is going to guarantee that you at least make a minimum payment and your credit score does not go down simply because you forgot a payment.
If the lender does not offer a simple way to set up payment reminders, you can use any software to do so. Even the calendar in your Google account can do a great job at that. The main idea is to not miss a payment so use a reminder that works for you.
Reduce Debt Amount Owed
Obviously, this is a lot easier said, but it is really important to do as much as possible. As you reduce the debt you owe, credit score automatically goes up and you get a satisfying achievement. Try to stop using the credit cards unless you really need them. The credit report can help you make a list of all the debt you have to deal with. Check the recent statements for your accounts and try to calculate how much money you can afford to give back every month. A payment plan has to be drafted based on the budget you have available at the moment. Always try to pay the highest interest first as minimum payments can be maintained on the other accounts. This is the best way to deal with debt and get back on track.