While credit repair is not something that is done overnight and many credit repair tips end up being completely false, there are some ways that people can improve their credit score on their own. However, there are many mistakes that people end up doing that could actually affect their credit score negatively. In this article, we’re going to give you some of the dos and don’ts of credit repair.

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Do Pay Your Bills on Time

This is probably the most important piece of advice you could ever give to someone with poor credit. While this may sound easier said than done, there are many things you can do to achieve your goal. If your bills are too high, you could always try to negotiate lower rates with your cable or utility company. Few people are aware of this, but many companies will be willing to reduce their rates in order to keep clients, so don’t be afraid to haggle. Second, you could also bundle services or go to the same company for your cable, internet and telephone. Telecom companies usually have special deals for these types of clients.

Don’t Start Closing Accounts

Many people think erroneously that closing accounts, especially when seeking financing, will help them. But that couldn’t be further from the truth. Did you know that credit utilization amounts to 30% of your whole credit card? When you close credit accounts, you automatically increase your credit utilization. It’s always better to keep your accounts active, especially when they have a low balance.

If You’re Going to Close an Account Do Close Your Store Card

If you feel the need to close an account, you should go with store cards. Store cards usually have very low limits on them. Credit utilization doesn’t take into account the amount you owe, the only thing that matters is the percentage. So, on a $500 card, $300 amounts to 60% credit utilization, which isn’t advantageous.

Don’t Do Multiple Requests for Credit

One of the most disastrous things you could do for your credit is open multiple credit cards at the same time. Every credit request you make, whether you get the card or not, negatively affects your credit score. So, the lesser demands for inquiry you have, the better your credit will be. Only apply for a credit card if you absolutely have to.

Conclusion

If you want to improve your credit score the right way, make sure that you follow the instructions in this article. Make sure that you keep the amount of credit requests to a minimum, but don’t close active accounts either. If you absolutely need to close an account, go for low limit accounts with high balances, such as store cards. If you had a history of late payments in the past, you can always get back on track. And also, don’t hesitate to get a copy of your credit report and consider filing a formal credit report dispute if there are any complications.

While credit repair is not something that is done overnight and many credit repair tips end up being completely false, there are some ways that people can improve their credit score on their own. However, there are many mistakes that people end up doing that could actually affect their credit score negatively. In this article, we’re going to give you some of the dos and don’ts of credit repair.

Do Pay Your Bills on Time

This is probably the most important piece of advice you could ever give to someone with poor credit. While this may sound easier said than done, there are many things you can do to achieve your goal. If your bills are too high, you could always try to negotiate lower rates with your cable or utility company. Few people are aware of this, but many companies will be willing to reduce their rates in order to keep clients, so don’t be afraid to haggle. Second, you could also bundle services or go to the same company for your cable, internet and telephone. Telecom companies usually have special deals for these types of clients.

Don’t Start Closing Accounts

Many people think erroneously that closing accounts, especially when seeking financing, will help them. But that couldn’t be further from the truth. Did you know that credit utilization amounts to 30% of your whole credit card? When you close credit accounts, you automatically increase your credit utilization. It’s always better to keep your accounts active, especially when they have a low balance.

If You’re Going to Close an Account Do Close Your Store Card

If you feel the need to close an account, you should go with store cards. Store cards usually have very low limits on them. Credit utilization doesn’t take into account the amount you owe, the only thing that matters is the percentage. So, on a $500 card, $300 amounts to 60% credit utilization, which isn’t advantageous.

Don’t Do Multiple Requests for Credit

One of the most disastrous things you could do for your credit is open multiple credit cards at the same time. Every credit request you make, whether you get the card or not, negatively affects your credit score. So, the lesser demands for inquiry you have, the better your credit will be. Only apply for a credit card if you absolutely have to.

Conclusion

If you want to improve your credit score the right way, make sure that you follow the instructions in this article. Make sure that you keep the amount of credit requests to a minimum, but don’t close active accounts either. If you absolutely need to close an account, go for low limit accounts with high balances, such as store cards. If you had a history of late payments in the past, you can always get back on track. And also, don’t hesitate to get a copy of your credit report and consider filing a formal credit report dispute if there are any complications.