Everyone makes mistakes. Past errors in judgment might have damaged your credit score. Thankfully, there are ways of fixing your rating. Here are a few ways to repair credit that are worth considering.
Creditors see how much you are paying and when. It’s the single biggest element that affects your credit score. It’s okay if you are only able to make minimum payments on credit cards and loans, but it’s helpful to pay more. The quicker you can satisfy your obligations, the better. Remember that late payments have a habit of lingering on credit reports for more than seven years. Never spend more than you can comfortably pay off, as this is the quickest way to spiraling debt.
Get a Secured Card
For those who are starting over, a secured credit card might be the answer. These accounts require that you pay upfront. The more you give, the higher your credit limit. Showing that you can use this card responsibly helps rebuild your spending history. Make sure that the card issuer you select makes a practice of reporting customer activity to all three major credit-reporting organizations. That way, your improved habits will be recognized.
Become an Authorized User
Request that you be named an authorized user on someone else’s card. Just being listed on an account will strengthen your credit, although the benefit can be modest. No other action is required. Beware that partnering with someone who has poor financial tendencies could have a negative impact. Some credit cards allow primary holders to set spending limits on secondary users. This ability can be leveraged to make the other party more comfortable with the prospect of allowing you access to their funds.
Use a Co-Signer
A poor credit score can make accessing funds difficult. One method of getting past this hurdle is by having a friend or family member act as a co-signer. This person’s positive financial reputation may help secure a credit card or loan in your name. Such an action is a huge favor, as this individual will be on the hook if you fail to act responsibly. Be cautious when using this arrangement, since misuse has the potential to destroy relationships.
These are merely a few strategies with which you can repair credit. More can be discovered by searching online. Use as many as you feel comfortable employing. Your credit should improve once you start making wise choices.