4 Easy Steps to Instant Credit Repair

Why is having a good credit standing necessary, and is there such a thing as instant credit repair? Having a low credit score can hurt you in many ways. Creditors could deny your loan applications, they could deny you of getting credit lines, and you will even find getting a job a lot tougher than it already is. More and more companies are taking a look at their job applicants’ credit reports to get an insight into their financial behavior. 

Do you have late payments to your bills? Do you have a debt that has been turned over to a debt collection agency? Have you been maxing out your credit utilization? If yes to all these questions, then you certainly have a very bad credit score. Below are some steps you can take to fix your credit score instantly.

Get Free Credit Reports and Identify the Cause

The first thing that you have to do is to identify the bad items that contribute to your low credit score. The law states that we are all entitled to receive one credit report per year from each of the three credit reporting companies. There are three major credit reporting companies you can ask your credit report. These are Experian, Equifax, and TransUnion. You do not need to worry about having to pay as you can get your credit report from each of these companies for free every year. Note that it is advisable to get one credit report from each of the companies as there might be inconsistencies with your data.

Dispute Errors

Now that you have your credit reports. Take a look at them and identify the reasons why you have a bad credit score. These could be late payments, debt collection items, or a high percentage of credit utilization. Look for items that claim you have late payments. If you are certain that the claims are false, then you should start disputing them. The credit report shows where to send your dispute.

 Settle Your Past Due Accounts

One of the factors that affect your credit score by 35% is your late payments. Having multiple late payments in your credit history will hurt your credit score big time. Turn these past due accounts into “current” state or “Paid”. Do your best not to have any charged-off accounts as this is the worst thing that can happen to your credit history. 

A charged-off account can happen when you have a payment that is more than 180 days past due. A Charged-off account means that a creditor has given up trying to take payments from you and has decided to turn over the task to a third party debt collection agency. If you have this in your credit report, then you might have already hit rock bottom with your credit score.

Ask For a Credit Limit Increase

One of the ways to get instant credit repair is to increase your credit limit. Increasing your credit limit will positively affect your credit utilization. Credit utilization is the ratio between your credit card balances and your credit limit. For example, you have a credit limit of $20,000 and you owe $10,000, then your credit utilization is 50 percent. It is suggested to keep your credit utilization to 30 percent to maintain a higher credit score. 

Hiring an Expert Helps a Lot

Credit repair companies are not only there to help you get instant credit repair. They are also consultants who can help you better understand how credit works. They can help you evaluate your credit report and provide techniques for you to maintain your good credit score. Bluewatercredit is a company that can help you. With broad knowledge about credit, you can count on them to fix and maintain your credit score. Visit Bluewatercredit to learn more.