- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
Fix My Credit Score Overview:
Getting credit at the times you need is undoubtedly the most important aspect of our financial life. There are no shortcuts to fix your credit score instantly however, the first action you have to do is to get your copy of your credit report and credit score. There are four types of credit bureaus which provide credit score like CIBIL, Equifax, Experian and CRIF Highmark. We at Creditseva provide free credit report and free credit score and this will help you to plan accordingly. There are many ways to improve your credit score and the best way to rebuild your credit score is to manage it responsibly through a step by step procedure without any further delay.
The Following aspects you have to keep in mind and these works even as checklists:
- Dispute errors if any – To err is human, sometimes you may find errors in your credit report and there is no reason to get panic and all you have to do is to file a dispute with the credit agency to remove errors.
- Always set up payment reminders – Making payments on time is one of the best factors that will contribute to improving your credit scores. Many banks provide you SMS and email alerts regarding payments that will help you to plan well Furthermore, there are also options like enrolling in automatic payments to have payments debited automatically through an account of your bank.
- Focus on reducing the amount of owed debt – By bringing down the expenditure on your credit card and by checking with your credit report, make a list on how much you owe on each of your accounts at what interest you are being charged. At this point of time choose your payment plan that includes giving high priority by allocating your most of your budget on debt payments and payment of those credit cards that have the highest interest and also focusing on minimum payments on your other accounts.
- If rejected never keep applying for credit – The enquiry will be recorded in your credit report, if you have applied for any credit card or loan if it is rejected recently. It is best that you wait for your credit score to improve and then apply for any credit.
- Focus on paying your loans – If there are any old loans that you are finding it difficult to pay and that is delaying, you should promptly pay that payment. If you find any further problem, then approach the bank and the bankers may help you in restructuring the debt to make it easy for you.
- Don’t settle credit cards and loans – Many people opt for settlement as this help them to pay for less amount then compare to full amount. Sometimes though banks allow this but it reflects as a settlement in your credit report and this will have a negative effect.
- Mixed Bag of credit – There are two types of loans unsecured loan and secured loan. If you take too many unsecured loans there is a greater possibility of not getting credit, so it is better to take a loan that is secured like a car loan, home loan and having the mixed bag of credit helps in improving your credit score and more the chances of getting credit.
Manage your credit card responsibly:
Fixing errors if any, in your credit history and following carefully the step by step procedure or the guidelines to maintain good and maintain credit history is of utmost importance. Last but least raising your scores need attention in detail and also the most important thing is discipline and patience.
Your credit score mainly depends on credit utilization, payment history, the mix of credit accounts, history age of credit accounts and age of credit accounts.
- Payment History – Undoubtedly payment history is one of the important aspects and sometimes a couple of late payments can lead to a drop in your credit score.
- Your credit accounts and its age. – The calculation is done by focusing on the oldest accounts and also the average age of all your accounts. Not closing your old credit accounts always helps you.
- Make your Credit Report error free – You have to write to credit bureau if you find any errors and get it fixed.
What Are the best ways to repair your Credit Score?
Repairing your credit score always helps you to improve your credit score and to get the credit at the times when you need it
Following are the ways that will help you to repair your Credit Score:
- Check your Credit History-The primary focus is to check your credit history by pulling the Credit Report from any of the Credit Bureau and review your credit report.
- Report the errors to credit bureaus – After gathering all the evidence related to errors, file a dispute with the major credit bureaus through online or in writing. After this, follow up the credit bureaus.
- Dispute errors if any – If you find any errors after reviewing your credit report such as negative information, duplicate entries, late payments collection items, debts you can dispute that information which are erroneous
- Always make timely payments – From your payment history, 35% of your total credit score is considered. Every month, pay all your current accounts on time. It would be better if you open a secured credit card if you don’t have any current accounts.
- Pay off your debt – From your debt utilization ratio comes 30% of your credit score is considered. To decrease your debt utilization, paying off your debt is the best way.
- Act on any missed payments: If you have missed any payments you can directly contact your creditor and work out on a payment plan that will help you to pay regularly.
- Credit Card – Paying your credit card without closing your credit accounts is one of the best ways to fix your credit
- Increase your available credit:
- Focus on maintaining the right credit mix and minimize new credit inquiries,
- You can increase your available credit by decreasing your credit utilization.
- Apply for a credit card, if you don’t have a credit card.
- A credit card can increase your credit mix as much as 10% of your score if you only have installment loans.
- Without increasing your outstanding debt, your credit card increases your available credit.
- Without opening a new credit card you can increase your available credit if you already have a credit card.
- For getting higher credit limit just call your bank if you have excellent borrowing behaviour then banks may increase your credit limit.
- When adding credit to your existing account, banks won’t put hard inquiry.
- The element of time – 10 % of your credit score depends on a length of the credit history. The best option is to keep active your credit cards that are oldest.
- New enquiries for credit can damage your score. Always ensure your focus on your knowing your credit score before making any hard enquiry. Many hard enquiries reflect that you are credit hungry and there is a more possibility of not getting the credit at the times you require.
- Fraud and identity theft alert. A comprehensive identity theft protection service will help you in preventing any identification theft and fraud.
Fix Credit Score & Report FAQ’s:
1. What are the Steps to fix your Credit?
There are numerous ways to fix your credit some of them include:
- Always keep your balances low on your credit cards
- Pay your EMI’s and bills on time without fail
- If you are planning to open a new credit account, apply only if you needed.
- Rather than moving it around, pay off your debt.
- Minimize your outstanding debt
2. What are the effective steps to fix your credit?
Following are some of the steps that will help you to fix your credit
- Check your credit history
- If you find any errors in your credit report communicate the information that is erroneous
- Report errors to credit bureaus and follow up
- Stop applying for new credit before you improve your credit score
- Make timely payments
- Pay off your debts
3. What are the factors to be considered before fixing your credit Score?
- One of the best ways to manage your credit responsibly over time is to fix your credit score
- Let us understand the factors that should be considered that will help you on fixing your credit score
- 35 % of your score depends on your payment history like paying bills on time
- 30 % of your credit score depends on reducing the amount that you owed.
- 15% depends on the length of credit history as the longer you have the credit history, the better for your credit score.
- 10 % of your score depends on your new credit as there is a possibility of your credit score likely to go down, each time you sign up for a new loan or a credit card.
- 10% of your score depends on your types of credit card and a good mix of credit types such as installment loans, credit cards and mortgage
4. What are the ways to fix your credit score?
- Timely Payments – Pay your bills on time by using your creditor’s automatic payment system or your bank’s online bill-paying system.
- Get your Credit Reports – Get your credit reports from any of the Credit Bureau at least once in a year to check.
- Fix any errors – Check if you find any errors, write to the credit bureau and get it fixed and this will help in fixing your credit score.
- Reduce the usage of Credit Card – Always focus on reducing the usage of the credit card by using 10 to 20 % of your credit. For example, if your credit limit is up to one lakh try to use only 10000 to 20000.