*So many people find themselves in a slump when it comes to repairing their credit and building a good credit score. It seems no matter how hard you try to keep up or catch up, those steps don’t appear to amount to any significant leaps.
And the thing is, this can be a problem whether you make decent money or not.
So how can we raise our credit score quickly? We are not talking miracles (but don’t get us wrong, well take ’em), but is there a sensible, reasonable way – that won’t take too long — that we can expect to see a change for the better, when it comes to a credit score.
Debt adviser, Steve Bucci, at Bankrate shares his wisdom on the topic.
Mark told him he makes decent money, but for the life of him he can’t raise his low credit score. He said he has looked for advice from credit repair places, but he just doesn’t know if they are the right move for him. Mark has even put steps to better his credit in motion. Unlike many, he took on the task of making this a priority and was actually able to pay off two credit cards and one jewelry account in a timely manner.
Now he is asking the debt adviser for help in moving forward. Bucci provides step-by-step actions and advice that may be useful to anyone in what we will call “credit distress.”
He tells Mark: It’s good that you’re thinking carefully about using a credit repair service. In many cases, you’re paying a company to do things that you can do yourself. Plus, many of these companies are disreputable. They’ll take your money, further harm your credit and then vanish. You can repair credit yourself with some patience and some guidance.
Here’s some background to help demystify the process. Your credit score utilizes historical data from your credit report to predict your future risk of default. The information on your credit report is usually an accurate reflection of your financial life. And finally, your financial life is a subset of the rest of your life. So if you’re having hard times, more than likely it will show up in your financial life, credit report and then credit score.
Before applying for a new credit card, check your credit for free at myBankrate.
You have a low score, so I’m going to guess you have some charged-off, unpaid or seriously delinquent accounts on your credit report. The damage to your credit score has already happened. What you can do initially is make sure the negatives reported on your credit file are accurate and not out of date. Look over your credit reports, and dispute any negative items that you don’t think are yours or are more than 7 years old. Once you have ensured your history is accurate, you can work on adding new, positive data.