Can you repair your credit without paying? There are actually many no cost things you can do. The truth is that you don’t have to hire an expensive credit counselling firm.
Technically you can do anything they do.
That’s not to say there aren’t certain instances that they are helpful. There are. But you can realistically raise your score and even completely fix your credit without paying a dime.
What are the best methods? Here are three you can implement immediately:
#1) Pay on time
Obviously there’s nothing new in this. Most people want there to be a faster way, but this is one of the quickset methods. Your bad credit is just a result of your past history, and the only way to change that is to build new history.
How do you pay on time?
Cut down on your expenses if you have to. And just pay a little at a time. The most important thing is that you are staying on top of your payments each month.
Some people make the mistake of missing a payment here or there to try and pay off the grand total off their debt. This might seem smart, but in reality it only hurts their credit score. Instead, don’t miss payments and when you can pay a little extra.
#2) File a dispute
To do this, you have to figure out if there are mistakes on your report. Most people don’t check their credit score nearly as much as they should.
Don’t make this mistake.
Missing an error on your report could cost you that loan or mortgage you’ve been wanting.
So how do you file?
Avoid using the forms provided by the bureaus. Instead, follow a sample letter online. They tend to be much more effective.
Just be sure to specify which specific parts of the report you have issue with. Being vague will just drag things out.
Should you have someone else file the dispute for you? No, because it will not be taken seriously. Some people pay others to do this for them, but it’s ineffective and a waste of time and money.
#3) Apply for a new credit card
If you don’t already have one, you need to get one to build up your score again. Many will advise you to just pay cash to avoid getting in debt again.
This is a mistake if you’re looking for long-term credit.
If you ever want to be able to get a reasonable interest rate again, the only way is to proactively raise your score.
But how do you avoid going back in debt?
One very important tip is to never go over half of the total credit you can use. For instance, if you have a two thousand dollar limit on your credit card, stay at or below one grand.
This is a simple way of staying on top of these things and not letting your debt get out of control. And attempt to always pay off your entire bill, not just the minimum.
Credit cards have very high interest rates that are compounded all the time. If you just make the minimum payments, your total debt will rise very quickly.
The most important thing is that you don’t make the same mistakes again. As long as you learn from your past failures, you will raise your score quickly and effectively.
FURTHER READING:
How to Raise Cash Quickly
