There are various institutions that offer the credit repair and credit building services for the customers with poor credit history. This is simply about resolving the factors that are impacting the credit in a negative manner. This is quite useful in improving your credit score and resolving the issue pertaining to your credit report. These service providers usually charge on the monthly retainer fee basis and work on the behalf of the cline to represent them for filing the disputes and correct the erroneous entries creating issues. This is a process that falls in credit repair domain. Other than this there are several methods which are useful in building credit on your own. Though these methods take time but they help you in getting the desired results and sustainable improvement in the credit score.
These seven ways are as below:
- Filing Dispute against the errors: There are possibilities of mistakes in making the entries either by the lending institution or the credit agencies. These erroneous entries may reflect in a negative manner and can have an adverse effect on your credit score. It is quite essential to raise the dispute against these entries and minimize the risk of getting your credit report negative. It can be done online by completing the process on the website of the credit agencies.
- Making Negotiation for payments: Though you cannot escape from making the payments but you can always ask them to erase the entries from the records. You can ask the institutions to record the payment in your account as paid as agreed for the balance amount to improve on the credit scores. In some of the cases, the company’s are also offering the goodwill adjustment for the borrowers that hold good credit in past but moved into negative zone due to uncontrollable situations.
- Always keep within the credit limits. You must ensure that your current credit card balance is always below the credit limit to safeguard you against the hefty interest on the overdrawn limits.
- Obtain a few credit cards: If you are not holding any credit card it will be better to own one or two credit cards. This helps you in getting into positive credit zone as it reflects you as responsible credit user. The secured credit cards are also one of the better options for the same.
- Add to existing card holder as authorized user: You can become authorized user of accrediting card held by your friend or relative. This helps you in improving your credit scores easily.
- Using the cards sparingly: This is important to avail the credit cards but it is essentially important manage the credit limit wisely. It is useful to keep the credit utilization score below 30% of the entire credit for improving the credit score.
- Increasing the credit limits on Cards: This is also useful in improving the credit score. You can write to the creditors for increasing the credit limits if you are maintaining the payment properly and underutilize the credit limits given to you.
These seven steps can easily help you in improving your credit and building a positive credit profile.