| There are many tips and hints available for fixing credit | | | | unpaid debt listing. |
| score problems. Unfortunately, if you aren't quite sure | | | | 5. Repayment Frequency |
| what you're doing, you could potentially make your | | | | An entire 35% of your total credit score is based on |
| issues worse instead of better. Understanding how | | | | your repayment history. As this is a major portion of |
| your credit score works isn't difficult. The Credit | | | | your total credit score, it makes sense to focus on this |
| Reporting Bureaus put together a summary of your | | | | aspect to give your score a quick boost. Take a look |
| borrowing history, your debt levels, the types of credit | | | | at how often you pay your credit card bill right now. If |
| you have and your repayment history, which is then | | | | you're like most people, you'll make the payment once |
| calculated to give a score. Lenders and banks access | | | | a month on or around the due date. However, if you |
| your score to determine how you've managed your | | | | don't have the cash to make an entire monthly |
| financial obligations and responsibilities in the past. A | | | | payment when the due date arrives, you risk being late |
| higher score tells them you're likely to be a good | | | | with your payment. Your lender will report this late |
| paying customer, while a lower score tells them that | | | | payment activity and this could affect your credit |
| you've had some financial difficulties in the past. If you | | | | score adversely. To help avoid this problem from |
| need to work on fixing credit score problems, here are | | | | happening, try to make your repayments on a more |
| some easy tips that can help to boost your score. | | | | frequent basis. For example, if you receive your |
| 1. Order a Free Copy of your Credit Score | | | | income weekly, pay one quarter of your regular |
| Before you begin working on fixing your credit score, | | | | monthly repayment each time you get paid. You'll be |
| you first need to know what it looks like today. Order | | | | paying four smaller amounts of money each month |
| a free copy of your credit score from all three Credit | | | | that still add up to the minimum payment due. Keep |
| Reporting Agencies. You'll find that there can | | | | your credit card bill so you can make payments when |
| sometimes be a discrepancy in your total credit score | | | | you want to make them. If you have personal loans, |
| between each agency. When the report arrives, read | | | | call your bank and see if they can arrange to make |
| through the listings carefully. You should notice that any | | | | more convenient payments. Your creditors will be |
| credit inquiries you've made in the last few years are | | | | happy that your payments are on time and you'll find |
| shown there, along with any missed payments, | | | | it's much easier to budget this way. It's also much |
| defaults, judgments, liens or any other issues you might | | | | harder to fall behind on your payments. |
| have had. Once you have a clear idea of what is | | | | 6. Re-Structure Your Finances |
| affecting your current credit score, you're in a stronger | | | | An entire 30% of your credit score is calculated based |
| position to work on fixing any problems. | | | | on the balances you have outstanding as they relate |
| 2. Remove Incorrect Listings | | | | to the credit limits available. Unfortunately, this has led |
| If you notice any listings on your credit report that don't | | | | people to try and shift existing balances around |
| belong to you or any listings that should have been | | | | between other cards in an effort to reduce credit |
| removed, make a careful note of them. Incorrect | | | | score. While the theory sounds good, the reality is |
| listings can be disputed and if the Credit Reporting | | | | most people will simply begin to spend more once they |
| Bureau can't verify your claim, the listing will be | | | | have the extra credit available. An easier way to fix |
| removed. You should be looking for entries that | | | | this aspect of your credit score is to restructure your |
| weren't made by you. These can include listings for | | | | finances. A good example of this could be to try and |
| people with similar names to your own or listings made | | | | consolidate some outstanding credit cards or store |
| fraudulently by someone using your identity. You should | | | | cards into a personal loan or consolidation loan. You |
| also look for any listings marked 'unpaid' or 'past due' | | | | should find that the interest rate charged on these |
| by the lender that you know you have paid in full. | | | | types of loans is often lower than you're paying on |
| These can be amended by your creditors easily once | | | | credit card balances, so you could be saving money |
| you've verified that the account has really been paid. | | | | on interest as well as reducing your monthly payments. |
| 3. Clear Up Past Due Debts | | | | While you'll still have the same amount of debt to start |
| Once you fall behind on repayments it can be difficult | | | | with, as you make each payment, the amount you |
| to catch up again. Unfortunately this creates a | | | | owe is reduced. This is because the payment |
| negative spiral where your lender may be charging | | | | structure on loans is dramatically different to the |
| you penalty interest rates and overdue fees, which | | | | payments due on your credit card balances. As your |
| make it even harder to catch up. If you're serious | | | | debt level drops, your credit score will begin to improve |
| about fixing credit score problems, then you'll need to | | | | with it and you can starting working towards |
| look into ways to catch up those past due debts | | | | that perfect credit score you've always wanted. |
| and pay off debts as soon as possible. You might | | | | 7. No New Credit Cards |
| consider a debt consolidation loan or a balance | | | | The worst thing you can do when you're working on |
| transfer credit card that offers a lower rate than | | | | fixing credit score problems is to keep building more |
| you're paying now to clear those old debts. If you don't | | | | debt. This can be challenging at first, especially if you're |
| qualify for these options, then you may need to | | | | used to paying for all your purchases on credit card. |
| negotiate a realistic payment plan with your lender to | | | | Instead of adding more debt, ask yourself if you really |
| help you get back in front. | | | | want to pay off a pair of shoes or a night out at 18% |
| 4. Negotiate a Payment Plan | | | | for the next couple of years. If you really want to buy |
| If you have no way of raising enough cash to clear | | | | a more expensive item, try putting it on lay-away and |
| any overdue payments, call your creditors immediately | | | | pay it off each time you get paid instead. It's |
| and negotiate a payment plan. Where possible, try to | | | | interest-free this way and won't harm your credit |
| make sure your payment plan is realistic and that you | | | | score. |
| can afford to keep up with the amounts you've | | | | 8. Mix and Match |
| agreed to pay. While you're talking to your creditors, it | | | | By mixing and matching these tips to suit your own |
| can't hurt to ask if they're willing to negotiate a lower | | | | budget, you should find that it doesn't take long to |
| interest rate with you, or perhaps an adjustment on | | | | regain control of your finances again. Stick to your |
| the penalty fees and charges you're paying. Once | | | | plans and work on keeping up with your payments. If |
| you've set a payment plan that is designed to pay off | | | | you find you have a couple of extra dollars left over at |
| the overdue amount, be sure to add even small | | | | the end of the month, put the extra into your |
| amounts extra on top of the payment due. Even an | | | | repayments to help you even further. |
| extra $5 per month can have a huge benefit to putting | | | | In Final |
| you back in front. When you're past due payments are | | | | Fixing poor or average credit score issues doesn't |
| caught up, call your lender again and ask them to | | | | have to be difficult, but if you still find you're unable to |
| amend the negative listing they placed on your credit | | | | make any difference on your own, don't be afraid to |
| report. A paid default listing is far preferable to an | | | | seek out professional help. |