Disclaimer: The following is a sponsored post by CreditRepair.com.
Did you know a low credit score can cause you to possibly spend tens of thousands of dollars in your lifetime? That’s because things like auto loans and mortgages carry very high-interest rates for people with poor credit. Someone with poor credit can expect to pay tens of thousands more in mortgage interest fees versus someone who has great credit.
Fortunately, there are several actionable steps you can take today to start repairing your credit.
You can get started by checking your credit score with CreditRepair.com. When you know your credit score, you can take actionable steps from there to increase that 3-digit score.
Here are 6 ways to get your credit back on track.
Before we get started, make sure to sign up for my free resource library and get access to exclusive printables all about saving money and building wealth, meal planning, and more.
1. Pay off bills on time with a plan
If your goal is to increase your credit score, you don’t want to miss a bill payment.
It may seem harmless to pay off a couple of bills late, but those late bill payments can stay on your credit report for up to 7 years. That’s a long time for a silly mistake which is why it’s incredibly important to stay on top of this.
Do you forget to pay bills on time? I created the Ultimate Financial Planner which includes a bill payment tracker so you never forget to make a payment.
Most bills let you take advantage of autopay, which lets the company automatically take the bill payment out of your account. This is an easy way to stay on top of things without taking any action at all.
2. Lower your credit utilization rate
A huge contributing factor to a poor or excellent credit score is the credit utilization rate.
A credit utilization rate is simple. It’s how much you owe on a credit card in ratio to your credit limit.
For example, if you have a credit limit of $10,000 and you have a balance of $3,000, you have a 30% credit utilization rate.
It’s recommended to keep your credit utilization rate below 30% and not only that, the ultimate goal should be to get rid of any credit card debt to keep the credit utilization rate at 0%.
3. Keep track of your credit score
If you’re trying to increase your credit score, it’s important to keep tabs on the progress. In fact, you can check your credit score as many times as you want and it won’t harm it. The only harm happens when you completely avoid checking your credit score and simply hope for the best.
Keeping track of your credit score is kind of like keeping tabs on your weight. You might not want to check it every day since you won’t see many changes, but checking it once every month or couple months is a good idea.
CreditRepair.com has an online dashboard that gives you 24 hour access to your credit score progress. It’s important to keep track of your progress to keep you motivated.
Not only that, you need to make sure you’re doing the right things to move forward with your credit score.
4. Maintain a good credit score
Once you have a good credit score, it’s important to do your job to maintain it. Let’s go over what a poor, fair, good, and excellent credit score is.
A poor credit score is between 300-579.
A fair to good credit score is between 580-720.
A very good to excellent credit score is between 720-850. Source: CreditRepair.com
You potentially save the most money when you’re in the very good to excellent credit score range, so it’s important to maintain a 720-850 credit score.
Your credit score combines your:
- Payment history (if you’ve paid bills on time)
- Credit utilization rate (keep this rate below 30%)
- Total amount of debt
- Account age/history
- Hard inquiries
5. Remove negative items
Did you know it’s not uncommon for a credit report to contain errors? This actually happens fairly often and can create damage to a credit score.
Once you check your credit report, you can get started removing questionable negative items. CreditRepair.com can do all of this for you.
The process with CreditRepair.com is simple. They check your credit for questionable negative items. They challenge those negative items with all three bureaus, and send letters to the creditors, asking them to prove what they’re reporting.
6. Create a game plan
Now that you know how important it is to have a good credit score, you can start taking action today.
First, I recommend printing out the Ultimate Financial Planner and paying the most attention to the bill payment printable.
Most importantly, I recommend checking your credit score. You can do this for free by going to CreditRepair.com. Then, you can create a game plan to increase your credit to the very good or excellent category of 720-850.
You can sign up online or call a CreditRepair.com advisor for a free personalized credit consultation, credit report summary, and score evaluation & game plan. It’s so easy to do and only takes 10 minutes.
Do you know your credit score? What are you doing to get your credit score back on track?
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