Low Credit Score? Repair Your Credit With These Simple Tips

Low Credit Score? Repair Your Credit With These Simple Tips


With so many individuals and families suffering from the financial effects of job losses, increased cost of living, and considerable difficulty making ends meet, it is no wonder that millions are faced with unfavorable credit scores. Fortunately, these tips and tricks will provide useful insight into ways that you can work toward a healthier credit score.

Check your credit report carefully before accepting discrepancies as valid. Credit reports sometimes contain inaccurate information. You can deal with these through credit disputes that can take a while to remove invalid discrepancies.

Working closely with the credit card companies can ensure proper credit restoration. Maintaining contact shows your good faith and can help you minimize further debt. Contact your credit card company and request to change your scheduled due date or interest rate.

Avoid paying off high interest rates so that you don’t pay too much. In most cases, creditors are somewhat limited in the amount of interest they can charge. Your initial agreement likely included a commitment to pay interest. It is likely you can have exorbitant interest rates reduced if you sue the creditor.

A debt repayment plan is an essential step towards repairing a bad or low credit score. It can be difficult to have existing debt as it hurts your credit score. Determine your budget and focus on reducing your debt as quickly as possible. Having no current debt will help to raise your credit score.

Try to work with debt collectors and explain your situation honestly. Be clear about the amount you can pay, and how frequently you can pay it. Collection agencies are usually willing to negotiate.

Credit repair can start with something as simple as keeping active savings and checking accounts. While your bank account does not show up on your credit score, you will come across lenders who want to see proof of income and budget management abilities that can be shown from a look at your bank history. Creditors look favorably on good banking records, so keeping your accounts in impeccable order is a must.

Work out a plan of attack where you can pay off collectors and any other accounts that are past due. Even after you pay them off, they will still be present on your credit rating, but at least they will show up as paid and will not continue to harm your rating.

Now you know how to repair your credit score, so get started on a plan of action. The faster you act, the less likely your lowered credit score will permanently affect your life.

The Law Office of Ranj Mohip LLC is here to help, don’t hesitate to give us a call!

By Ranj Mohip

Law Office of Ranj Mohip, LLC
203 North LaSalle Street
Suite 2170
Chicago, IL 60601
(312) 558-1376