How To Repair Your Credit Score

In today’s economy it’s more important than ever to have a good credit score, but
millions of consumers simply don’t and all too often find themselves looking for tips
on how to repair their credit score. If you already have credit accounts credit cards
or loans, you will have a credit file and score with the 3 major credit bureaus(Experian,EquiFax and Transunion). The following
tips will help you know how to repair your credit score: Use credit, but be smart about
it.

One vital tip on how to repair your credit score:

how to repair your credit score

how to repair your credit score

you need to use credit to build credit.
Make manageable purchases with your credit card and pay down the balance each month,
but don’t pay off your balance completely.So if you made a purchase of $500 and paid
it off 30 days later, it does not usually reflect that on your credit report, so do
something like that within a 60 to 90 day spread instead. Having a zero balance is good
to avoid interest charges but not in repairing your credit score. If a zero balance is reported
to the credit bureaus it appears as though you’re not using the account, which negatively
impacts your score. To improve your credit score, pay off all but $10-$50 of your balance.
This will show activity on your credit to help repair your credit score. Next, never
max out your card, even if you are able to pay off the full amount at the end of the
billing cycle. Keep your balance to below 30% of your available credit limit. Be meticulous
in this area as more than a third of your credit score is based on your credit utilization
ratio – which means how much of your available credit limit you’re using. Your credit report
shows two columns of data regarding this,your credit limit, and your high credit, or
in other words, the highest your balance has been on that account. Another useful pointer
on how to repair your credit score is to spreadout your debt. It’s better to have small balances
on several cards than a big balance on onecard. It’s also good to have wide gaps between

how to repair credit

how to repair credit

your balances and your limits, especiallyon revolving debt such as credit cards and
department stores. Although you’ll still be rewarded for paying down installment debt

like mortgages or auto loans, your scores improve much more dramatically when you pay
down revolving debt. Keep accounts open and active. Another vital tip on how to repair
your credit score is not to close any accounts.Each of your accounts has a history, and your
credit payment history represents 35% of your score. Another related tip on how to repair
your credit score is don’t let your creditor close it due to inactivity because it will
show on the credit report as ‘closed bycredit grantor’ which lowers your credit
score. Another important tip on how to repair your credit score is to have a healthy mix
of credit. Have at least one installment and two revolving accounts; after that be careful
about applying for new credit. Too much available credit can be perceived as dangerous by potential
lenders. You’ll also get dinged with more inquiries if you have a lot of accounts; and
every point counts when you are applying fora major loan. We hope these tips will help
you to repair your credit score.

Thank you for reading our article on how to repair your credit score, and good luck.