Credit Repair Suggestions

A good credit score isn't something that most people look for in a mate, but your credit score can have a big impact on your financial plans. Couples in which both partners have high credit scores are in a better position to purchase a home and get loans and credit with low interest rates. If you have bad credit, it is never too soon to get started on credit repair.

Pay Down Debts

Carrying lot of debt is harmful to your financial health in more ways the one. High balances on credit cards and personal loans force you to make costly interest payments each month. In addition, your total amount of debt is one of the most important factors in determining your credit score. Reducing debt can boost your credit score and put more money in your pocket at the same time. It is usually best pay off debts with the highest interest rates first, since they are the most costly.

Get a Free Credit Report

It can be tempting to stick you head in the sand and forget all of your past credit mistakes, but checking your credit history can help you understand your credit situation. According to the Federal Trade Commission, you are entitled to a free credit report from each of the tree major credit bureaus TransUnion, Equifax, and Experian once each year. AnnualCreditReport.com is the only authorized source for the free annual credit reports, according to the Federal Trade Commission (see Resources).

Dispute Credit Errors

When you order a credit report, you might notice erroneous credit events or events that you have cleared up with your creditors in the past. If you find a mistake, send the credit reporting company a letter detailing the mistake and provide copies of documentation that supports your claim if you can. Eliminating credit reporting errors can result in a quick boost to your credit sore.

Automatic Bill Payment

Many banks let customers pay bills automatically on a recurring basis. Setting up automatic bill payment and bill reminders can help you avoid late payments on your bills. Your bill payment history makes up about 35 percent of your credit score, so establishing a history of timely bill payments is essential for credit repair. Check your account from time to time to make sure that your automatic payments are made as scheduled.

About the Author

Gregory Hamel has been a writer since September 2008 and has also authored three novels. He has a Bachelor of Arts in economics from St. Olaf College. Hamel maintains a blog focused on massive open online courses and computer programming.