Credit much like language is a universal thing that you really can’t do without. Therefore establishing responsible financial behaviour is paramount and you can do this in the way you approach your existing credit.
Here are 7 best ways to repair your credit score.
1. Become an authorised user.
Family members with good credit can help those struggling with less-than-stellar credit scores by adding their name to an existing credit card account as an authorised user. The credit card or line of credit must be current and have available credit.
If the family member appears reluctant, the borrower can offer to put something in writing to help protect the family member.
2. Raise your available credit.
Requesting a higher credit limit from an already-established creditor may also help boost the borrower’s available credit line. This in turn could help elevate a credit score.
3. Have a good mix of debt.
If all debt is unsecured, a creditor may be suspicious of a borrower’s ability to get an installment or secured loan, like a mortgage, car or student loan. Mixing loan types secured and unsecured may result in a more favourable score and a more reliable borrower.
4. Get rid of negative listings on your credit record
If say you’re blacklisted. Get rid of this by paying off current debts, settling accounts in arrears, checking your credit report for accuracy and making sure your record is updated by a credit bureau.
Once you’ve settled an account, credit providers have to report the settlement to credit bureaus within seven days. Credit Bureaus then have another seven days to remove the negative listing.
5. Pay down outstanding balances.
Decreasing your percentage of available credit used can make a quick and significant impact on your credit score. So go on a bare-bones budget to free up cash to pay down your balance. Or sell something.
6. Keep your old credit cards.
Your age of credit history has a moderate but still meaningful impact on your credit score. If you’re hoping to increase your credit score but you also need to get rid of a credit card account, get rid of your newest card.
7. Make minimum payments on time.
To stay on track with creditors and preserve a credit score, make certain every loan’s required payments are made on time.
