There are dozens of services that claim they can fix your bad credit for you. This is technically true. But what they don’t tell you is that everything they do, you can do yourself.
So, how do you go about fixing your own bad credit? There are at least six things you can do that are easy as pie.
1. Take out a Credit Card (That you Never Use)
This tip sounds strange, but the purpose behind this becomes clear if you focus on the fact that you should never use this card.
You see, your credit can be improved in a number of ways. One of these ways is by having your debts paid and your credit even. If you take out a card, reports view this as a risk. After all, if you overcharge your card, your credit will suffer.
But if you don’t use the card at all, you won’t incur any negative credit. The existence of the risk will improve your score, even as you refrain from actually taking part in the risk.
2. Dispute Inaccuracies in Your Credit Reports
There will tend to be more inaccuracies in your reports than you might expect. Disputing them is stressful, but it is absolutely worth it.
The most common inaccuracies come from car payments. Sometimes banks just will not register that you have paid for your car, even after you have finished your payments.
They are legally obligated to do this, however, so you can be certain they’ll capitulate to you if you apply any amount of pressure on them to recognize your status.
3. Request Higher Credit Limits
This method requires a credit card, but again, you can have a card without using it.
The logic here is that a higher limit implies a greater risk. It’s basically you “calling your shot” and saying how much money you plan to spend.
The more you borrow, the more impressive it is when it’s paid off. So if you raise your limit, then pay it off or don’t use it, it will raise your score.
4. Become a Friend’s Co-Signer
This method relies on you having a friend with good credit. It doesn’t have to be exceptional either—if they follow all the steps on this list, you can help each other out.
Co-sign a loan they’re getting or become an authorized user on their card. Then, you are both participating in the “risk” associated with that credit. Hence, you will both be credited for it being paid off.
5. Mix up Your Credit
There are many different types of credit. Bills and cards are on thing, while loans and property are another. If you have only one of these four, consider investing in the other three. Diversity builds more credit than reliability.
6. Pay Your Bills!
This is the most obvious way to improve your score, and the one you have the most control over. But if you don’t pay your bills, you can’t expect anyone to take your credit seriously.
Your credit is in your hands, and no one is more qualified to improve it than you. Hopefully, you will have some idea of how to improve things now.