10 Proven DIY Credit Repair Strategies to Boost Your Score
Everyone can make financial missteps. Fortunately, your credit report and score can change just like your financial situation. Here are 10 strategies to help raise your credit score without needing to hire a credit repair agency:
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Get a Copy of Your Credit Report: Regularly review reports from the 3 major credit bureaus (Equifax, Experian, and TransUnion). Identify errors that might be dragging your score down.
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Dispute Inaccuracies: If you find any negative entries that are inaccurate, submit a dispute to the credit bureau. They’re required to provide evidence of those mistakes or remove them.
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Pay Bills on Time: On-time payments positively impact your credit history. Set reminders or automate payments to avoid missing any due dates.
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Eliminate Old Debt: Ask for good will deletion from collectors. They may remove negative entries if you pay off your debt, especially if you have a history of on-time payments.
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Request Increased Credit Limits: Higher limits can reduce your credit utilization ratio, which makes up 30% of your score. Contact your card issuer to request an increase based on your timely payments.
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Set Up a Payment Plan: Prioritize paying off the smallest balance first, then apply that payment to the next balance. This “avalanche method” allows you to make faster progress on debts.
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Use a Secured Credit Card: This card requires a deposit, which becomes your credit limit. Use it responsibly, and it’ll show up as a positive account on your credit report.
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Become an Authorized User: Get added to a family member’s or friend’s credit card. Their entire account history may appear on your report, boosting your score instantly.
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Don’t Close Unused Credit Accounts: Length of credit history plays a role in your score. Keep old accounts open so they can continue to improve your score.
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Regularly Check Your Credit Score: Stay on top of your progress and identify any changes by monitoring your credit score. Many online tools let you monitor for free.
DIY credit repair requires patience and persistence, but it can lead to lasting financial success without the expense of hiring credit repair services. Remember, you have the right to dispute inaccuracies that don’t belong on your report, and with time, these strategies can help you achieve better credit and peace of mind.