Four Tips That Can Help Repair Your Credit Score
1,285 views01.21.2012 
by LoansInfoOnline.com Editor in Uncategorized
Bad credit scores can be repaired. Learn a few tips on how you can begin to restore your credit score to good standing.
Once your credit score has taken a turn for the worst, it is up to you to repair it. If you act quickly, you should be able to stop the downward spiral and level off your credit score without having to undergo any more damage. Just follow these simple tips to get yourself on the right path to financial soundness.
Tip 1: Make Your Payments on Time
If you haven’t already been doing so, start to make all of your payments on time. This includes payments for all of your bills, not just your credit card bills. Late payments damage your credit score. The greater the number of late payments that you have, the greater the damage is. Plus, it takes a few months for the negative effect of a late payment to disappear, making it essential for you to pay your bills on time.
Tip 2: Pay Down Your Debt
It is important to pay more than the minimum amount due on each of your bills in order to bring down your level of debt. As your debt decreases, you increase the likelihood that your credit score is going to see an improvement. If you pay only the minimum amount due on each of your credit card accounts, you are simply going to maintain the same level of debt or worse if you continue to spend money.
Tip 3: Vary the Type of Credit That You Use
It is important not to rely on the same credit card for all of your purchases. If you have older accounts in good standing that you have not used lately, consider using one of them for a few purchases that you can pay off in full when the bill comes due. In order to ensure that you will be able to pay this debt off, keep the purchases low. In fact, you might be able to use the card for a recurring monthly expense that is small such as a telephone bill. As you pay off the credit card each month in full, you are rebuilding positive activity on your credit history.
Tip 4: Apply for a Secured Credit Card
If you are in serious difficulty regarding your credit score, obtaining a secured credit card might be the best strategy for getting your financial status back in line. To obtain secured credit cards, you must deposit a small sum of money initially. This sum represents the limit you have on the credit card. Through the responsible use of this type of account, you can rebuild your credit score a little bit at a time.
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January 22nd, 2012 at 8:28 pm
another insightful post that I’m sure will help others with their credit.
Wish I had done most these things before my credit got ruined, now I know for next time.
January 24th, 2012 at 10:16 am
I have been working with many people to try and help them get back inline financially, I normally focus on the budget side of things to dig them out of the hole they have put themselves in.
Now thanks to your tips above, I’m adding a section to my services to be able to help them after that to rebuild their credit. It’s a win-win situation for both them and me. They will have better credit and I will have an extra service to sell them.
I was wondering if you could tell me what you think the best way to charge them for this service. Like a straight up fee for the tips / action plan to repair their credit score, or a monthly / yearly fee as it gets better?
Or maybe I shouldn’t charge at all, I could probably make commission on referring them to a credit card provider, which could be my best bet, or even do both, what do you think?
January 25th, 2012 at 2:01 am
Thank you for these helpful tips! I make sure to never spend more on my credit card than I can pay back when the statement comes to make sure I never carry a balance. I think that this is one of the best ways to keep my credit score good.
January 27th, 2012 at 9:15 am
I put my payments on automatic bill pay and it really has made a difference for me this past year! Great tips!
January 27th, 2012 at 9:21 am
You are spot on. I have been following these now for several months and it is finally making a difference! Doesn’t happen overnight but it DOES work.