Credit Repair Tips

Budgeting, credit repair, and savings are not always everyone’s favorite topic to discuss. People often struggle to raise their income, set aside funds, and pay down their debt. Repairing your credit is an important skill to learn. You should always seek to understand what is considered an excellent, good, fair, and bad credit score. Ransom Kelly at Assurance Financial has helped community members of Birmingham Alabama obtain the goal of home ownership. Today we want to share a little bit more about how to improve your credit before you apply for a home mortgage.

Working Alone versus Working with a Credit Repair Company

Many banks, as well as local companies and nonprofits, offer assistance with consumers who want to repair their credit. You may want to search free support resources through consumer groups or your bank. Sometimes, you really need some legal help. Look up local financial fitness and literacy classes to get started. It is important to review the Better Business Bureau scores and customer reviews of an organization before working with any company on credit repair.

You can also educate yourself online and call your creditor with any questions to make improvements yourself. You want to caution yourself against hard pulling your credit score too often, as this can have a negative impact on the numbers.

Tips to Repair Your Credit

While you work to repair your credit, it is important to use a spreadsheet or system to track your budget and your debts due. Be sure to include a list with columns for the following: the name of the company owed/creditor, the total credit limit, the balance due, the monthly minimum payment due, the due date, the interest rate, and the date the company reports to the credit bureau. Here are some other tips to repair your credit:

  • Be sure you know your credit score, and understand that having no credit hurts your credit score;
  • Pay bills on time and call to negotiate if you cannot;
  • Do not open/close too many credit cards, especially not all at the same time;
  • Use an older card to make a small purchase, and pay it back immediately to raise your score;
  • Reduce unnecessary purchases and look for ways to save money;
  • Obtain a small, secured credit card and pay it back if you cannot get a regular credit card;
  • Look up when your credit company reports to the credit bureau and attempt to make payments before this date, and;
  • Dispute errors on your credit report and caution against identity theft.

Ransom Kelly at Assurance Financial looks forward to speaking with you more about your home loan needs. We hope you found this week’s blog post helpful and welcome you to call us with any questions.