What is the Fastest Way to Repair Your Credit?

If you’ve had some credit problems in the past, you may be having difficulty being approved for loans at reasonable rates, or possibly even being approved at all. Once you’re faced with the consequences of the damage that’s been done, you need to work on doing something about it. So what is the fastest way to repair your credit?

Find Out Exactly Where You Stand

Start by obtaining a copy of your credit report from AnnualCreditReport.com. See what negative items are being reported, such as past-due payments and collections accounts. Missed payments remain on your credit report for seven years but will have less impact as time passes as long as you don’t miss any more payments.

Get Caught up on Past Due Accounts

If any of your accounts are currently past due, you’ll need to get them caught up as soon as you can if you want to repair your credit. While getting current on past due accounts doesn’t erase the fact that you fell behind, it does allow you to start building a pattern of paying as agreed. Setting up automatic payments with your creditors is a good way to make sure you never miss a payment because you forgot about it.

Reduce Your Credit Utilization

One of the factors used in determining your credit score is credit utilization, which means how much of your available credit you’re using. Whenever possible, keep your credit utilization under 30 percent of your available balance.

If your credit utilization is too high, work on paying down your debt. Commit to not using credit cards for new purchases so that the amount you owe doesn’t get any higher. You can also lower your credit utilization rate by consolidating credit cards into a personal loan or by asking for a higher credit limit.

Avoid Applying for New Credit

Getting a new credit card can also increase the amount of your available credit and lower your credit utilization rate. This may help if you only do it once, but if you keep applying for new credit, you set off a red flag to potential lenders. Multiple inquiries can have a negative impact on your credit score.

Dispute Inaccurate Items

It’s very important to double-check that what’s on your credit report is accurate. It’s not uncommon to find errors. Any inaccuracies you find on your credit report should be disputed right away. You may find accounts you already paid off showing outstanding balances or accounts that you’ve never paid late being reported as late. Having inaccurate items removed from your credit report is one of the fastest ways to repair your credit.

If you need help navigating the world of credit repair, reach out to Dovly. We can dispute inaccurate items for you and help you to improve your credit score. And our automated credit repair engine continues to monitor and manage your credit 24 hours a day, 7 days a week, which can give you peace of mind. Get in touch with Dovly today.