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Tips to Repair Your Credit

Credit repair can be confusing. Here are some tips to helping you improve your credit score.
Lewis Robinson Dec 3, 2019

Credit Repair Professionals

That's part of the reason you might want to look into the best credit repair company possible and see if there's anything that professionals can do to help. You may find that professional advice and assistance is the best and fastest way to get your credit score back up to snuff.
That said, credit repair costs money, and if you already have a bad credit score, you might not have the money to spare. There are things you can do on your own that can help you fix your credit score.

Pay Bills on Time

This seems like common sense, but it's a huge factor in damaging your credit score. One or two late payments probably won't do much damage, but consistently late payments and overdue notices will have a cumulative effect.
Pay off any overdue bills as soon as possible and do everything you can to make sure that you don't miss another payment. Automatic withdrawals can save you from payments getting lost in the mail but you should keep an eye on your bank account to monitor those payments no matter what. The last thing you want is to be stuck with overdraft fees.

Open Accounts

One important way to help your credit score is by keeping the right number of open accounts. Too many accounts and you look like a bad investment. Not enough accounts and the bank has no way of knowing whether you are responsible with money or not.
It's a difficult balance to strike, and you'd be forgiven for being frustrated with the unclear rules of building credit, but be patient. Building a good credit score will take time.
Talk to your bank to see if it has credit building resources. Many banking apps have a free credit score check that won't damage your score and will give you tops on how to improve your score.

Keep Your Balance Low

This one is particularly counterintuitive. Surely having more money shows that you're responsible with money? Unfortunately, that simply isn't the point. The point isn't to have money, the point is to show that you know how to handle money.
Just holding onto money doesn't show the bank anything, and in fact, it can be a warning sign. You have all this money, and you don't know what to do with it. So, don't let money just sit in your account doing nothing, make sure that your money is working for you and in so doing, show your bank that you know how to manage money.

Keep a Card Open

It can be tempting, particularly if you've had trouble with credit card debt in the past, to simply get rid of all your cards and never use them again. Unfortunately, that can work against you if you're trying to improve your credit score.
Again, the object is to demonstrate that you know how to manage money, not that you know how to avoid having to manage money. Keep at least one card open and use it. Pay off your debt on time, to show that you know how to manage your money, and your credit score will improve to reflect that.
Last but not least: be patient. One of the most frustrating things about credit is that it can be very easy to damage your score, and rebuilding your credit score takes time. It's a question of trust, after all. Trust is easily broken, and takes a long time to repair.