How to Quickly Repair Your Credit

how to quickly repair your credit

The only time a lot of people think about how to do quick credit repair is when they need to apply for new credit and their credit score already sucks. A lot of banks have tighter regulations and criteria for offering credit to customers. Many banks won’t give out any type of credit unless applicants have at least a credit score of 700.

The good news is that repairing your credit is easier then you think. Everyone has a different financial situation, though, so make sure you use steps that are going to be beneficial to you and your situation.

Common Credit Report Errors

The most effective of all the quick credit repair tips is to review your credit report to make sure there are no errors. Look for accounts that you have paid in full but are still listed as having an amount owing. You may also find items on the report that are not actually yours and should not even be on there. Dispute these items and get them removed from your credit report. Once that is done you will see your credit score increase very quickly!

Look for Delinquent Accounts

Any of your accounts that are delinquent need to be addressed right away and the accounts need to be paid off quickly. When you have delinquent accounts (any account past due), you get a negative mark on your credit report and that is going to cause a big drop on your credit score, which could affect your life in many ways.

If you speak to the creditors and set up a payment arrangement, they will see that you are trying to be responsible and get your finances in order. This is going to encourage them to assist you with your efforts to follow a plan to pay off the debt.

Pay in a Timely Manner

As much as 35% of your credit score is based on your repayment history. If you have late payments they will be reported to the credit bureaus and that will lower your credit score.

To prevent this, set up a budget and set aside money to pay your creditors on time.

You could even try making smaller payments a few times a month so that the total payment is done in a timely manner and in full. That may be easier to fit into your budget and may keep you from making late payments.

Watch Your Outstanding Balances

As much as 30% of your credit score comes from the amount of debt that you have compared to the amount of open credit you have available.

You want to keep your outstanding balances at 30% of your credit limit, or less. For example, if you have $3000 available on a credit card, you don’t want to carry more than a $900 balance. Reduce your balances as much as possible if you want to repair your credit score.

Should You Consolidate Your Debt?

In some cases, consolidating your debt may be the best quick credit repair solution for you. This is true if a few of your accounts are past due or you have a few credit cards maxed out to their limit. In this situation you may want to apply for a debt consolidation loan.

When you combine all your past due or maxed out credit card debts into a debt consolidation loan, the creditors have to show you are paid in full on your credit report.

The next step is to make sure that you limit your credit card spending and ensure you pay any amount owing in full each month. Now remember, you are working on repairing your credit, so the last thing you want to do is to close all of your credit card accounts.

Some people think that doing that is a great idea. But the opposite is true. You want to leave those cards open because that shows that you have established a credit history, which is important if you want to improve your credit score.

You can find a lot of quick credit repair tips, but you need to make sure the ones that you choose are a good fit for your financial situation.


    • Natalie @ Financegirl

      Natalie @ Financegirl 06/25/2014 8:26 a.m. #

      I had a few errors in some of the names that had been reported. While that didn't affect my credit, it was incorrect, and I had it fixed. I can't imagine now checking up on my credit and really knowing what's in my reports.

      • Sicorra

        Sicorra 06/25/2014 2:45 p.m. #

        Not sure what you mean. Are you referring to the names of the companies you had credit with or variations of your name?

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