CreditYES Logo
Start 2023 Strong

How to Fix Your Credit

Sep 18, 2023

Navigating the landscape of credit repair can be daunting. However, seizing control of your credit destiny is not only empowering but can save you a substantial amount in the long run. Let’s explore 10 actionable steps you can take to rejuvenate your credit without breaking the bank.

Step 1: Inspect Your Credit Report

Inaccuracies can lurk in your credit report, impacting your score. Regularly review reports from Experion,TransUnion, and Equifax through Scrutinize accounts, personaldetails, and credit inquiries for potential errors.

Step 2: Challenge Credit Report Errors

Don’t let inaccuracies dictate your credit fate. If you spot errors, exercise your right to dispute them. Whether online by mail, or phone, each credit bureau - Experian, TransUnion, and Equifax - has a dispute process. Be vigilant in initiating corrections and ensure accurate reporting.

Step 3: Bring Past-Due Accounts Current

Timely payments are paramount for a healthy credit score. If you’re nearing the 30-day mark on a payment, settle it immediately. For accounts already overdue bring them current promptly to mitigate theimpact on your credit.

Step 4: Maintain a Low Credit Utilization Rate

Master the art of credit utilization. calculate your ratio by dividing credit card balances by total limits. A rate above 30% can harm your score, so aim to keep it below 10%. Reducing balances swiftly can yield quick credit score improvements.

Step 5: Pay Off Debt Strategically

Overcome high-interest debt by crafting a budget that prioritizes repayment. Explore methods like the debt snowball, debt avalanche, or consider a debt consolidation loan. Lower interest rates can save you money, providing a clear path to debt freedom.

Step 6: Apply for New Credit Wisely

Approach any new credit judiciously, understanding that each application triggers a temporary dip in your credit score. Leverage tools like CardMatch to identify credit aligning with your profile, ensuring a higher likelihood of approval.

Step 7: Keep Unused Credit Accounts Open

Closing paid-off credit cards may seem tempting, but it could harm your credit score. The available credit helps maintain a healthy credit utilization rate, while a longer credit history positively influences your score.

Step 8: Explore Secured Credit Cards

Secure a fresh start with a secured credit card. By placing a refundable security deposit, you mitigate risk, making it accessible even with poor credit. Regular, responsible use and on-time payments can be a catalyst for credit score improvement.

Step 9: Opt for a Credit-Builder Loan

Delve into credit-builder loans designed to fortify your credit profile. Repay the loan in fixed monthly installments, and as a bonus, the repayment history is reported to major credit bureaus, contributing positively to your credit score.

Step 10: Exercise Patience and Monitor Progress

Rebuilding credit is a gradual process. Sign up for free credit monitoring to receive real-time alerts on changes. Stay vigilant, and witness the positive impact of your efforts.

Your commitment to improvement will yield long-term financial benefits. Embark on this journey, armed now with knowhow, and watch your credit soar to new heights!

Need a car but have less-than-perfect credit? CreditYES can help! We have over 20 years of experience getting people cars that they love.