The ability to repair a bad credit score is becoming more and more important as the number of people that default on accounts or damage their credit in other ways increases. There are methods that can be used to repair bad credit that are considered to be easier to accomplish than other methods, but unfortunately, most people do not know what those methods are. Knowing the options will help repair bad credit quickly and improve the chances of being approved for additional credit in the future.
Reduce The Amount Of Credit Used
One of the easiest ways to repair a bad credit score is to limit the amount of credit used at any given time to less than 50% of what is available. People are considered “at risk” if more than 50% of their available credit limit has been used. Using more than this percentage indicates to lenders that the person is not using credit in the correct manner or spending more than they can afford to repay. Reducing the percentage of credit used by paying down the balance of credit card accounts makes the person more credit worthy to lending companies.
Fix Credit Report Mistakes
Another easy method for repairing a bad credit score is to fix any mistakes that may be on your credit report. It is estimated that the percentage of credit reports containing mistakes may be as high as 35% and one mistake on a credit report has the ability to decrease your credit score by a significant amount. By carefully reviewing your credit report on a regular basis, you can find any issues quickly and fix them before they become larger problems.
Close Recently Opened Accounts
Another simple method to repair a bad credit score easily is to stop using recently opened credit accounts and close these accounts once they have been paid off. The total number of credit accounts in the person’s name is reflected in their credit score and a large number of open credit accounts is an indication of a person that is a risk to lend credit to. By closing these accounts, the person retains older accounts that help your credit score and eliminates the accounts that can hurt your credit score.