Editor’s Note: This guest post is by Fred McGuire, from CreditSecretReviews.org. Check out his latest entry; Smart Money Secret Review
The best way to get a low interest rate loan is to have a good credit score. However, you may not have good credit for a number of reasons. Perhaps you went through an expensive divorce, suffered a serious illness that drained your finances or haven’t been keeping watch of your finances. Still, there is hope of improving your scores.
One thing you should know is that improving your credit score will require you to make some money changes in your life. Moreover, it can take some time for your score to improve. Therefore, the faster you get started, the better. Follow the do-it-yourself credit repair tips below and you will up your score in no time.
3 Ways to Improve Your Credit Score
Set up payment reminders
One of the easiest ways to improve your credit score is to pay your credit payments on time. The payments include your insurance, rent, phone bills, and other recurring expenses. Some banks allow you to set up payment reminders on their online portals.
You can also set up automatic payments on your bank account. Contact your bank to find out how you can set up automatic bill payment from your account.
Check your credit report for errors
Your credit report contains the data used to calculate your credit score. Request for a copy of your credit report from Experian, TransUnion or Equifax. You do not have to pay for the report if you only request for it once a year.
When you get the report, go through it and check for any errors that may have made your score incorrect. Go through the amounts owed in the report and make sure they are correct. Apart from this, check that there are no late payments incorrectly entered in your report.
If you spot any errors in your report, contact the credit bureau and ask for corrections to be made. You may have to produce evidence of the information you are disputing, for example receipts to show you made your payments on time. You have to contact the bureaus in writing for your report entries to be investigated.
Keep in mind that it may take up to one month for the bureau to get back to you with the outcome of their investigations on your report.
Reduce your debt
The amount of debt you are late paying is another major contributor to a low credit score. Go through your finances and find out all the money you owe and those you are late with paying. Check your bank account statement for a list of your debts and the amount of interest you owe on them. Then, find a way to reduce the debt.
Reducing debt can be done in two ways; reducing your expenses or increasing your income. Go through your budget and cut down on non-essential spending. For example, if you have a pile of subscription magazines in your home, perhaps it’s time to cancel the subscription and use the money you will have saved to pay off your debts.
Rebuilding your credit history will not happen instantly. Therefore, you need to be patient and consistent with reducing your debt and paying your bills on time. The above tips will help to improve your credit score.