Many individuals in the United States struggle with their credit ratings. Unfortunately, it’s very easy to damage a credit score with just a few bad decisions. The good news is that there are many ways to build that credit back up with fast credit report repair tips. The instant credit builder information below will help individuals boost their credit scores and maintain a good or excellent rating.
Monitor the Credit Report
All individuals should monitor their credit reports. Unfortunately, identity theft is a real problem that happens to a lot of good people. However, by monitoring their credit report, individuals can act quickly if they notice strange behavior. This will help keep the credit score the way it should be rather than being damaged by identity theft. Also, sometimes the wrong information is placed on a credit report and once individuals notice this, they can dispute the account on the credit report. The only website which actually provides the yearly free credit report is AnnualCreditReport, and individuals can arrange to monitor credit more often as well.
Keep Low Balances
One of the best fast credit report repair tips is to hold a low balance. Ideally, the balance kept on a credit card should be only about 10% of the available balance at any given time. This will help credit lenders see that the individual is responsible and has a good credit to debt ratio. It will also help keep individuals from becoming overwhelmed and unable to pay down their debts. It can be very easy to purchase things with a credit card when money gets tight, but doing this will only harm the individual’s credit in the future. Keep balances low to build credit.
Pay More Than the Minimum Payment
It’s also important for individuals to pay more than the minimum payment on a debt. By doing so, they reduce the original balance rather than just paying the interest on the loan. When an individual has a ton of debt and lenders see that he or she is only paying down the minimum payment, the individual will look irresponsible and may not be deemed a worthy or good credit risk. By paying more than the minimum payment, individuals will show lenders and the credit bureaus that they take their debts seriously and will stand up to the responsibility of paying them.
Avoid Applying for Several Lines of Credit at Once
When individuals apply for several lines of credit at once, it reflects poorly on the credit report. This is especially true when they’re being turned down for the credit. Some individuals believe they should keep applying until they are approved for credit, but this is not the case. If an individual gets turned down once, this should be the last attempt at credit for quite some time. The individual will receive a letter from the lender they applied with, letting them know why they were refused credit. This is another good chance to get a copy of the credit report. The letter typically has instructions on the back for how to receive a free copy of the report.
When individuals use the instant credit builder tips above, they can really engage in fast credit report repair without having to pay a credit repair company money to learn the same things.