How to Repair a Poor Credit Score

Poor Credit Score

A credit score is basically what any lender will look at before availing you the credit service that you need. Whether you are applying for a credit card, a business loan or even a mortgage, you will not be able to succeed with a poor credit score. It is vital that if your credit score is already poor, you work on repairing it first before you go seeking the credit services.

Causes of and how to repair a poor credit score.

· Little or no credit history at all.

Sometimes, you might never have borrowed from any institution. When you approach a lender and he pulls your credit score, there is not much to go by. The lender might be hesitant about availing you credit because he is not sure whether or not you have the ability to pay at all. This can only be solved by trying to get a few credit services and servicing them well so that a lender sees your potential and is able to trust you.

· Mistakes on credit files

There are times when you might take a credit facility but not fill the credit application forms with all the correct information. Every credit facility that you take leaves an electric trail that future lenders will look at. Simple information like the business you are doing, you contacts and postal address need to be filled correctly in order to avoid mistakes that make you look like you have a poor credit score.

· Not paying on time

This is the biggest contributor to poor credit scoring. When you go to credit scoring sites such as The Experian scoring system, you will realize that most people are given a poor score because of small loans and credit card bills that they failed to pay on time. It is prudent that when you take a credit service, you make arrangements to have your payments done on time so that this does not affect your future borrowing.

The most important tip on how to repair a poor credit score is to look back at all credit facilities that you might have taken in the past and correct all the mistakes that might have been made. If you didn’t finish your payments, make arrangements to do so. If you made some simple mistakes while filling the application forms in your previous facilities ensure that you correct them and have your lenders update the information. There are times when you might be listed as having a poor credit score by mistake. Go through every little thing and ensure that information is captured and filed correctly. This way if the poor credit score was given because of these mistakes, you will be able to correct them.

Credit Repair for Bad Credit


Having good credit is the key influential factor on how one will have access to loans and enjoy other financial benefits from banks, cooperatives and other lending institutions. The best way to ensure a good and reliable credit history is by responsibly managing one’s credit from time to time However, if this was unsuccessful, numerous ways might help one in fixing a bad credit.

The first and basic step in fixing a bad credit is having the knowledge about the credit and acknowledging the gravity of the problem. This information is gathered from the credit score and credit report documents. The documents provide with sufficient information on the scores, errors, late payments and your debt-to-credit ratio.

This information will help identify the area with the problem and help one fix it In case of any errors found in the documents, it is only wise that an individual would dispute them. Alert the credit bureau of any errors and prove the errors to help them rectify the errors.

Another way of improving credit is by maintaining a debt less than 20%. This, in addition to maintaining a credit card balance of 10%, will increase the credit score. Here, individuals are advised to pay off they credits. Several methods have proven to bear fruits in the methods through which individuals should organize the schedule for paying their debts. Organizing the debt from the biggest amount to the smallest amount, according the the rate of interest are among the plans individuals can consider. Maintaining a good credit report is also indispensable if one is to fix a bad credit.

Having a clear and consistent budget will help not only to meet financial obligations, but also to help the problem of overspending. Paying bills on time will also ensure a good credit report. Another method is applying for credit-builder prepaid and credit cards.

These cards improve an individual’s credit score, which is achieved by borrowing cash from the card company and effectively paying it This custom helps improve one’s credit reports. In the quest for repairing bad credit, individuals often get offers from different companies. Some of these offers are appealing but analyzing them critically will help them from falling prey to frauds and swindlers. Some of these companies do not have a problem breaking the law just to get that dime from you They will come up with offers and claims of segregating one’s files so that all the old debts disappears, little do individuals know that they are stolen information and not their own.