Are you tired of having a low credit score, but have no idea where to turn to help?
If this sounds like you, then read on to find out how to repair your credit on YOUR terms. All it takes is a little elbow grease and know-how.
- Obtain free copies of your credit report—once per year—from www.annualcreditreport.com. The scores are not included for free, but just having the reports is a huge step in the right direction.
- Keep your credit utilization percentage at a MAXIMUM of 10%. That might sound super low to you, compared to the 30% that was recommended just a few short years ago. But, to get in that super, high-achievers club, 10% is the new standard. This means that if your total credit card limits are $10,000, your balance should never exceed $1,000.
- Consider opening an account with www.selflender.com, if you need to add positive credit to your reports. This account offers you the ability to save money, invest it into a CD, and build your credit—all at the same time!
- DO NOT close any of your credit card accounts, including the ones with zero balances. Thirty-five percent of your credit score is based on the length of your credit history. If you close even one account with a long history, you will likely see an immediate drop in your scores.
- Open an account with your local credit union with the goal of building a long-term relationship. Once you join a credit union, you are now a member/part-owner of the credit union. Credit unions are lower rates on credit cards, auto loans, home loans, and many other products. Also, credit unions typically have multiple options to select from if you need to rebuild credit.
- Consult with a trusted credit professional, if you have charged off accounts and/or past due accounts that you are thinking of paying off. You have to keep in mind that paying off a collection account doesn’t automatically remove it. In fact, paying a collection could actually lower your score, as well! You need to be well-versed in your state’s statute of limitations, if you have collections on your credit reports.
- DO NOT dispute errors in your reports online, and DO NOT send a barrage of disputes to the respective credit bureaus. Each dispute should be sent separately and explained in detail, to ensure that your dispute doesn’t get marked as “frivolous.” You want the credit bureaus to thoroughly research your disputed claims, so take the time to make sure you submit thorough documentation.
Please keep in mind that rebuilding credit is a process, and it may take 180 days or more. It is important to remain patient and, most of all, proactive!
For more information on business building, business launching and real estate income streams, sign up for our next FREE webinar at www.bit.ly/daniellepierce.
This article was written by The BOSS Network Influencer, Danielle Pierce.
Danielle is a Speaker, Author, Business Coach and 10 Year Real Estate Wealth Strategist. She specializes in showing mompreneurs how to elevate their lifestyle and create generational wealth through real estate. Register for her next webinar at www.bit.ly/daniellepierce.
Learn more about Danielle Pierce by visiting her website at www.mommyandmerealestate.com
Follow Danielle on Twitter @_DaniellePierce
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