Your credit score unveils a lot about your financial health. For lenders, it is an indication of how dutifully you use credit. The higher your score, the simpler it is to get approvals for lines or credit or new loans. It also opens up the door to avail low-interest rates when you take a loan. If you are struggling with a poor credit score, you need professional advice from an expert like Tradebloc Tim Clark for effective credit repair.
Credit repair is important because a spotty credit report affects your credit worthiness. This results in fewer loan options, a higher rate of interest, and even difficulty finding a new home or acquiring particular services. Tim Clark has been in the credit repair industry for over 22 years, helping over 50,000 clients improve their credit scores. Discussed here are some valuable credit repair tips from him:
1. Review Your Credit Report
Did you know that erroneous or duplicate entry can impact your credit score? Therefore, it is important to know what is working in your favor and what not. That’s why it is important to check your credit history.
The best way is to pull a copy of your credit report from the three credit bureaus – Experian, TransUnion, and Equifax. A copy of your report is available once a year. Get one and review it thoroughly to identify what’s impacting your score, suggests Tradebloc Tim Clark.
There are several factors contributing to a higher credit score. This includes lower credit card balance, on-time payments, old credit accounts, a mix of loan and credit card accounts, and minimal new credit inquiries. On the other hand, major score detractors are high credit card balance, missed or late payments, collections, high credit card balance, etc.
2. Dispute Errors or Negative Marks
For any error, negative marks or duplicate entry, raise a dispute. Start paying attention to items that have more impact on your credit report. Check for negative marks like judgments and collection accounts. Also find duplicate entries or errors from an old account, which might be pulling down the score.
However, negotiating with a creditor can be complex because most often, they do not pay heed and the entry will continue to affect your credit score. When you hire a professional credit repair company, they have the expertise and skill to negotiate with the creditors and get the false remark or erroneous entry removed from the report.
3. Make Sure Not to Miss Payments
A sure-shot method of improving your credit score is to never miss a payment by more than 29 days. Generally, payments that are a minimum of 30 days late might be reported to the credit bureaus and affect your credit score. You can also set up automatic payment schedules for the minimum amount due, to help avoid missing a payment.
4. Reduce Your Revolving Account Balance
Even if you are paying your bills timely, a high revolving credit balance can result in a high credit utilization rate, pulling down your scores. Revolving credit accounts include lines of credit and credit cards. Paying down these balances can help improve your score.
If DIY credit repair strategies are not working for you, consult an expert like Tradebloc Tim Clark for effective credit repair results.
