Credit Repair

6 Surefire Ways to Build Your Credit

Bad credit doesn’t last forever. If you follow some proven strategies, you can easily build your credit. The good news is that you can start right now. Following is a brief rundown on some of the surefire ways that will put your FICO score back on track.

Break Your Credit Card Habit

If you are still making credit card purchases, you are actually shutting all the doors that can help you get out of the problem. In fact, it will only make the problem more complex. So, the first thing you have to do is to stop using plastic money, at least until you regain some control of the situation.

Get Your Fico Report and Clean Up the Errors

You are legally entitled to a free FICO report once every year. You can request the same from credit agencies either by placing the request on phone or by filling the relevant forms online from their official websites. The idea is to check the report for errors and mistakes. If you find some incorrect information out there, you must immediately contact the agency and the related lenders to correct the same.

Build a Better Payment History

It is very important for you to keep in mind that 35% of your credit score is determined by your payment history. Therefore, if you want to build your credit, you have to be current on your delinquent accounts. So, do everything needed to keep your payments current. Any default at this stage will only make things further difficult for you.

No More Applications for Credit

You are not in a situation to put applications for more credit, at least until your credit is in repair mode. If you still keep applying for loans and debts, it will only lower down your FICO score, even if your applications get rejected.

Be Careful While Closing Any Delinquent Account

Closing delinquent accounts may also have a serious negative impact on your FICO score. Therefore, while you are considering any such thing, make sure you do a thorough review and analysis.

Talk to Your Creditors

When people are unable to make the repayments in time, they often tend to avoid any contact with their creditors. Most of the times, they even stop responding to their phone calls and notices sent to them via snail mails or emails. However, in reality, talking to your creditors can be a great strategy to build your credit. The idea is to make them aware of your situation and request for some help. The banks and lending institutions often have some temporary hardship programs, which you may qualify for. As per these programs, your monthly payments may be reduced to a significantly lower amount. This will help you keep your payments current, which will eventually have a positive effect on your FICO score.

If you implement these 6 strategies thoroughly, it should not take you much longer to build your credit.

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Posted in Build Your Credit, Credit Repair | 1 Comment »

One Response to “6 Surefire Ways to Build Your Credit”

  1. john says:

    The solutions can be very useful for everyone. We should always try to do the payments in time. If we want a good credit score we have to be very careful about our debts and the mode of repayment………….I am a firm believer of budgeting. I always try to include each and every expense in my budget. The payment of creditors is very important, no matter if you are a business man or a working class employee.
    I am fully agreed with the fact that we should avoid using credit cards, if we already have a higher amount of debt. Shopping with plastic money, dining out, movies; should be under controlled for some time and you will save a smart amount of money which can be used to build your credit. First you should try to repay all your debts then only you can think about further loan or any credit card. If you don’t have sufficient funds to pay your debts, you can go for another job or any part time work. so that you can enjoy a debt free life.
    The most important factor is we should never try to ignore our creditors. It gives a very bad impression of our financial behavior.

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