Credit Repair Suggestions

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.

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).

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.

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.