A bad credit score is usually 580 points or lower on a scale that ranges from 300 to 850. You can improve your credit score gradually and consistently by employing the following credit repair methods.
1. Review your credit reports. All three credit reporting bureaus keep details about you in personalized credit reports. These reports offer details about your name, address, contact information, place of employment, your open credit lines, recently used credit and other details. With so much information packed inside, there is a good chance that the details about you are outdated or simply incorrect. Review your credit reports and make note of mistakes.
2. Correct wrong and outdated information. With incorrect information found in your reports, you do not want to allow it to remain without disputing. Notify the respective credit bureau to inform them of the mistake. You need to do this in writing and you must be as detailed as possible. Explain what you believe is the mistake and include a copy of the mistake as found on your credit report. In 30 days to no more than 90 days, that information will be reviewed and it will be removed as requested if your request is upheld.
3. Attack your debt. The more debt you have, the more difficult it will be to raise your credit score. At this point you need to attack your debt and bring it down to a manageable level. That lower level can be achieved by paying off your smallest balances first before attacking the next largest balance. Soon, your credit score will begin to rise and you will be on your way to getting out of debt.
4. Remind yourself when payments are due. You have trouble enough remembering when loan payments are due. Why not set up reminders to help you keep track of it all? You can have your creditors notify you when a bill is due, by having those notices sent out 10 days before the due date. When you receive notification, set up payment to avoid a late fee.
5. Know that bad information may remain. You’ve taken steps to remove incorrect information from your credit report and have succeeded. Now you want to have the debt that went to collections removed as well — after all your paid off what you owed. Unfortunately, getting debt paid off is one thing, but having information removed that is correct, but reflects poorly on you isn’t always possible. Know that negative information that is true can stay on your credit reports for seven years. Always avoid having anything referred to a debt collector.
Bad Credit Score
Once your credit score tops 600 you’re on your way out of subprime credit territory. You no longer have bad credit and you will still need to raise it to about 700 to reach good credit. The higher your credit score the more likely you will be approved for new credit and that credit can come to you at a lower interest rate, too.
See Also — How to Get a Bad Credit Credit Card
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