Do you know your credit score? Most people don’t monitor their credit scores closely enough. As a result, their scores are not as high as they could be due to errors and unknown debts. The credit repair industry is growing as consumers are beginning to realize how credit affects their ability to make large purchases and even apply for certain jobs. Still use of a credit service is not always necessary. Unless you are vexed with complex credit issues there are a few simple things that can be done to resuscitate your credit.
Check Your Score. Knowing your score is empowering. There are plenty of free ways to get this valuable information. A credit score is one part payment history (35%), debts owed (30%), length of credit history (15%), the types of credit used (10%), and any new credit (10%). To get your credit on the right track, ensure there are not inaccurate reports of late payments on your report and that the amounts you owe are accurate.
Reduce Credit Card Usage. Having balances on your credit cards is actually good for your credit, but large balances on too many cards will hurt your credit. Most experts suggest consumers stay within 10 to 20 percent of available credit. So if your credit card has a $2,000 limit, then the balance should be no bigger than $400.
Setup Payment Reminders. Paying your bills on time has a big impact on your credit. In most cases, you can set up automatic payments with creditors. Put due dates in your phone calendars and email accounts so that you’ll be reminded when the time comes. When setting up automatic payments for credit cards, see if you can pay more than the minimum payment. Paying more than the minimum payment, even by $10, will help your credit considerably.
Reduce Your Debt. This can be easier said than done. As previously mentioned, you can easily reduce credit card debt by making frequent payments that are more than the minimums. Look at all of your credit cards and attack the ones with the highest interest rate first, while making normal payments on the others. This signals good money management.
It may take years to get your credit to a desirable number, but in the end it is a worthy endeavor. If you are unable to fix your credit alone, then enlisting the help of a credible credit repair service may be advisable. Before joining a service, check their reviews online. Avoid any credit repair merchants with bad reviews or no reviews. eMerchantBroker.com provides qualified credit repair merchant accounts with payment processing that helps consumers rebuild their credit.