As an adult trying to make it in the volatile economic circumstances in 2020, you’ve got to be aware of how essential it is to maintain good credit. However, the more essential that having good credit gets, the more misinformation is spread on the internet about how to make it better.
Before anything else, you need to understand that the valid bad items on your credit history cannot be removed overnight. If a credit repair service guarantees that they will be able to do so, you should run in the opposite direction.
However, some strategies can work to improve your base credit score over time.
Understanding the Current State of Your Credit
First, you have to take a detailed look at your credit report and history. If you have a low score right now, the reason is probably in there. A history of missing payments, high credit utilization, multiple hard inquiries, and declaring bankruptcy usually affects a score the most.
Look through all of the negative items and make a note of them so you can tailor your strategies and dispute the wrong items on the report.
Ensure You Have Low Utilization Rates
Credit utilization rates are one of the key ways you can manage your credit card based items. Utilization rates are calculated by dividing your total credit card balance with your credit card’s total limit. This shows lenders how much you rely on credit as a means to survive.
A high credit utilization rate shows that there’s too much balance based on your capacity to pay it off, making you a bad investment. One way to play the system is to keep your unused credit accounts open. This lowers the rate, while you continue to pay off your debt.
Checking For False Credit Items
Ensure that there are absolutely no false items listen on your credit report. Faulty paperwork or human error can lead to negative items listed on the report, which will bring your score down.
Look through all of your payment receipts and crosscheck all remaining balances. This can get complicated, which is why hiring affordable credit repair consultants could be a wise choice during this step. They can look through your history as well as file paperwork to get items removed if something relevant comes up.
Create Diverse Credit
Creating a reliable credit profile also means that you should have different lines of credit open. Don’t rely solely on credit cards. Having loans and mortgages that you’re paying off regularly can build a diverse profile and increase your score.
There are many more personalized strategies that credit repair consulting experts can advise you on. Consider getting an appointment with our team at Oak Credit Repair so that you, too, can shed the baggage of bad credit!