5. If you find any errors on your credit report, dispute them.
Make sure to contact directly the credit bureau which reported the error.
Ask them how to file a dispute and you will be provided detailed instruction on how to proceed.
Also contact the lender that made the error. Often times, they can correct the information and update all three major credit bureaus.
4. Make sure to pay any late or past due accounts.
This is a crucial step in repairing your credit because it shows good faith on your part.
The longer you delay your payment, the worse its impact on your credit.
3. Pay down as much debt as you can.
Pay off high interest accounts first. If you have a card that has a 17.5% APR and one that has a 9.0% APR, prioritize on paying the higher rate card first.
You can also pay off a card with the lowest balance first so that you can strike it off your list.
2. Pay your balances on time.
Make sure to pay your accounts on time in order to improve your score.
By doing so, you are showing your current and future lenders that you are a responsible borrower.
Setup automatic monthly payments with your bank to make sure that you pay promptly and on a regular basis.
1. Age all your accounts.
This sexy money tip may run counter to what others might advise you.
The length of your credit history matters big time so do not close down any older credit card accounts.
If you keep your older accounts open, you will be building credit age.
Typically, the average number of years your accounts have been open is considered your overall credit age.
The older your overall credit age, the better its impact on your credit score. 💰