5 Simple Steps To Repair Your Credit

 

No matter what you have been through, you CAN repair your credit over time if you know what to do.  Here are a few simple credit repair tips:

 

1. Avoid over spending by creating an honest, realistic budget. To stay out of financial trouble in the future you must understand your flow of income and expenses.   A realistic budget is your best weapon against overspending.  Get help in this area if you need it.  And have someone that you trust who will hold you accountable to staying on your budget.  There is great freedom that comes with living within your means, but we all need encouragement.  One of the NHF services we provide is periodic follow-up after our initial program to make sure you are not only ‘Back On Track’ but that you are ‘staying’ on track.

 

2. Clean up your credit report.  Get a copy of your credit report at www.myfico.com.  There are 3 different reporting agencies, and you need to know what they are all saying about you. Analyze your credit report and look for incorrect or misleading information. Make a list of all items considered to be questionable or negative. Request a correction by writing a dispute letter to each credit bureau that reports an error. Wait for the credit bureaus to investigate your claims…then make sure the fix has been made.  NHF will help you here if you want it.

 

3. Get a credit card, make necessary purchases every month and completely pay off the balance on time.  Creditors like to see good credit payment history in your credit report.  If you have a credit card, use it every month. Make small purchases and pay them off to avoid interest charges and build your credit history.   If you don't have and can’t get a regular credit card, apply for a secured credit card.  A secured credit card is a guaranteed credit card that has been secured by a deposit to the issuer's bank.  Generally, you must deposit an amount, ranging from $300 to $5,000, in a low-interest savings account or CD to secure the credit card.  You then receive a credit line for up to 100 percent of your account balance. Each bank has its own requirements for how much you must deposit for your credit line. The bank issues you a credit card using your deposit as security.

 

4.  Avoid excessive credit inquiries.  Each time you apply for loans, bankcards, or department store revolving charge cards, the inquiry is noted on your credit report.  While a normal number of inquires is expected, too many may create questions and lower your score.  We know of one instance where a consumer requested a loan from a used car dealer who applied to 22 different financing companies.  That action dropped the consumer’s credit score almost 80 points in two days.   Numerous open charge accounts, or large credit lines may also raise a red flag.  Make sure to stay current with those credit accounts you need and eliminate any that you don’t use.

 

5.  Pay all your bills on time.   Enough said.

 

The amount of time it takes to rebuild your credit depends on how badly it was damaged…you can start improving your score in as little as 2 months.  It’s always best to discuss the specifics of your situation with a professional.  National Home Owners Financial can give you some insight into this situation as well showing you where to get more help if you need it.

 

 Call 866-673-7255 today for your FREE Confidential Evaluation.