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A low credit score can make it hard to get a loan or even the option to pay a low rental deposit on an apartment when you need it the most. That’s why it’s important to work on improving your low credit score. While there are several approaches you can take to improve a low credit score, some strategies outshine the rest. Here are some effective options you can apply to fix a low credit score.
1. Catch Up With Delinquent Payments
One of the fastest ways you can improve your low credit score is by catching up past due payments and continue paying them on time. That’s because your payment history typically impacts your credit score by 35 percent. So, when you don’t pay your credit card, mortgage, or other bills on time, you risk lowering your score significantly.
2. Fix Errors on Your Credit Report
Whether it’s an old debt you paid off years ago or duplicate accounts, errors on your credit report can keep your credit score low. So, it’s important to check your credit report for mistakes and correct them. You can order your credit report for free once every 12 months from Experian, Equifax and TransUnion via AnnualCreditReport.com and review the reports for errors. If you notice an error, including incomplete or wrong information, then report the error to the credit reporting company and the creditor in writing to dispute the information.
3. Hire a Credit Repair Company
While you can DIY fixing a low credit score, you don’t have to deal with it on your own and spend hours trying to make corrections. You can hire a credit repair company like Sky Blue Credit Repair or The Credit People to help you handle your low credit score and save you time with fixing your credit score. For instance, you can get a free consultation from Sky Blue and have them send good faith letters to your creditors on your behalf. You can also use Lexington Law to help you fix errors on your credit report. Or you can try The Credit People’s seven-day trial for $19 to test out the service. These companies are reputable with decades of experience.
4. Pay Down Your Balances
If you want to make a big impact on your credit score, consider paying down any large loans you owe. This may include mortgages, a car loan, your student loans, or large balances on your credit cards. When you lower your balances, you can help improve your credit score.
Fixing a low credit score can seem overwhelming at first. But with a plan, you can get it under control and improve your score. The good news is that if you’re looking to fix your credit, you got more options than one. Just follow the tips mentioned here, and you’ll be on your way to fixing your low credit score.