So How Does Credit Repair Really Work?
Anyone who says that they can improve your credit report within no times and without doing anything on your par, is not revealing fact to you Do not believe on such claims and don’t never pay anything to such claimants for their so called “Services”. It is always preferable to believe in yourself and pay the debts on time which will automatically improve your credit scores and you will be safe and confident at last. But it does not mean that Credit rating of someone can’t be repaired. There are certain primary tips for repair your credit rating.
What can you do to repair your credit?
If your credit rating is poor, there are following methods which will make your credit rating healthy again. If you will follow following methods you will find that your credit rating is coming on right track:(Also See this post to improve your credit)
1. Bills should be paid down fully. This will account for 35% of your credit score. If only this point is observed, you will have a respectable credit rating.
2. Credit Utilization should be low. This will account for 30% of your credit score. For example, if your credit card limit is $100,000 and you’re maintaining a balance of $30,000, you’re using 30% of your limit. But if there is a sudden reduction in your credit limit to $30,000, then suddenly you’re using 100 percent of the limit what’s available to you So, it is wise to pay credit card debt at the earliest. Thus, you should maintain a cushion of credit utilization 01 30% or less for improvement in your credit rating.
3. It is advisable not to close the account when you clear a credit card debt fully. This will account for 15% of your credit score. If you close your account it will reduce your credit availability and consequently your credit score will also go down. It will be better practice to avail credit even for petty purchases and pay them off on time quickly. This will certainly improve your credibility as well as credit rating.
If you’re having a zero balance credit card and you are charged heavy annual fee on it, it will be better to fetch a credit card with no-fee feature. On getting a new credit card, you should get rid of the old credit card on time to avoid heavy annual fee.
Kind of credit obtained by you forms 10% of your credit score. So it is good practice to diversify your credit requirements and maintain a good credit mix. Remaining 10% of your credit score is determined by the quantity of credit availed by you so far.
Try the given tips in your life and you will find that your credit rating is improving gradually. It is better to practice these basics in your financial transactions and maintain economic discipline so that your credit rating will rise for sure.
Contact us today if you have questions about fixing your credit score.