I found out how to raise my credit score the hard way. A few years back I was not approved for a loan because of my bad credit rating. I knew my credit rating was not the best but I did not realise it was that low. From that day on I vowed to get my financial ducks in a row, starting by raising my credit score.
It was after that eye opening moment that I started to take responsibility for my financial situation, which was not as healthy as what I had previously thought. So I formed my own strategy to raise my credit score. A strategy which helped me raise my score and achieve a sparkling credit record. Here is my 6 point credit strategy, I hope you find that it helps you as much as it has helped me!
1. Pay bills on time and pay off outstanding debt
2. Close unnecessary accounts
3. Stop maxing out credit card
4. Get a free credit report
5. Check irregularities
6. Write a dispute letter
Pay bills on time and outstanding debt!
Firstly I took an honest look at myself and my credit situation and knew that I got into debt because of bad financial decisions and not paying my bills on time. I knew that in order to raise my credit score I had to become disciplined. Paying my bills on time, was the hardest step for me, but once I made paying my bills a priority my life went much smoother. Simultaneously I had to pay all outstanding debt. I started by paying off the lowest outstanding amount first, this made me feel better and more confident as each debt was paid off.
Close Unnecessary Accounts
The unnecessary purchasing of clothing and other items solely because I could purchase on credit is what got me into debt in the first place. I had a lot of 'stuff' and accounts which I did not need. So my prioritized paying off my clothing accounts and then I closed all of them. I realised that I could make do with what I had and if I really needed something I could save for it.
Stop Maxing Out Credit Cards
A good tip I learnt on the internet was to never max out my credit card but to only use 30% of my available limit. Once I reached this I needed to pay the card in full. Also be disciplined when using your credit card, use it only in case of emergencies.
Get A Free Credit Report
Request a credit report from the credit bureaus to get a clear indication of your financial health. There are 3 major credit bureaus which deal with individuals and you are entitled to a full credit report from each one of them.
Check Irregularities
Once you have your credit report you need to check for any irregularities which might be on it. Irregularities such as debt which has been paid yet is not reflected on your credit report.
Write a dispute letter
If irregularities are found, then you need to write a letter to the various bureaus stating your findings so that it can be remedied. Send evidence of the payments made to prove your case. After investigating the bureaus will make the necessary adjustments and raise your credit score.
This is the strategy I used to pay off my debt and raise my credit score. It took a few months but in the end I was debt free and I had a good credit rating!
![[Valid RSS feed]](http://www.articlemarketinghome.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites