Top 4 Ways to Rebuild Your Credit Score
Rome was not built in a day—nor will your credit score. With that said, you should know that your credit score is very much REPARABLE.
How soon depends on two things: how much below par your score currently is and what steps you take from now on to improve it.
The key to success is to start immediately. Four corrective measures that always bring good results are:
1. Pay past bills as soon as possible
Payment history accounts for as much as 35% of your credit score. It is one of the most important factors, if not the most important factor, in calculating a credit score.
Once you’ve brought your payment history current, ensure you are not late in making paying bills in the future. Some tips that will prove handy are:
- Setup auto payments with the bank
- Setup alerts to remind you about future payments (You can use an online calendar for this if you like)
- Request for an email reminder when a bill is due
2. Improve your utilization rate
Lenders analyze your utilization rate before offering you a loan. Utilization rate takes two things into account, your current debt and total credit available to you. The higher the ratio of the current debt to total debt, the lower the utilization rate and fewer the financial options open to you.
For instance, an outstanding balance of $500 on the total credit limit of $1500 means a lower utilization rate. In addition, better opportunities in comparison to an outstanding balance of $1200.
3. Maintain your older, good credit accounts
Closing an old account with good history is not recommended, even if you don’t use the account anymore. An old account with a positive repayment history can improve your overall rating, so keep them open.
4. Check your credit report for inaccuracies
Almost two out of every three credit reports contain inaccuracies. (If the colleague sitting next to you on either side is sure his report is accurate, your report, statistically speaking, will have errors.)
Each of three credit bureaus offer one free credit report a year. You don’t have to order all three at once. Every four months, you can check one report online to ensure all information in it is correct.
If any information is incorrect, promptly raise a dispute with the credit bureaus. Remember to attach the credit report, with errors clearly marked, and the supporting documents with your letter of dispute.
When you raise a dispute, the credit bureau will contact the company that provided the disputed information and will report to you within 30 days. The contacted party, in turn, will investigate and report back its finding. The incorrect information will then be erased and a copy of the updated credit report will be sent to you for free.
Do you have a bad credit score but you’re in need of cash? Best Credit SG Pte Ltd is a licensed moneylender in Singapore. We are open everyday including Sundays to assist you with your cash needs. If you’re looking for a loan, you can contact us at +65 6272 5538 or visit our office at Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372. We will do our best to help you with your needs.