A lot of life events are affected by your credit score. Your credit score affects being able to get a mortgage, rent an apartment, the interest rates you are charged, and much more. If your credit score, as defined by FICO is 669 or below, you may want to consider credit repair to increase your number.

1. HOW TO BEGIN CREDIT REPAIR

The first step in improving your credit score is to determine what score you are starting with. Your score is based on information in your credit report. This report records your repayment history, credit management, and debt. Your credit report will also include records of any bankruptcies, repossessions, and accounts that have gone to collection.

Request a copy of your credit report from each of the three major credit bureaus:

• Experian
• Equifax
• Transunion

You are entitled to one free credit report each year under The Fair and Accurate Credit Transactions Act, an amendment to FCRA since 2003. This report will be your starting point, as it will identify the accounts you need to work on.

Under the law, you have the right to dispute any information on this report you know is inaccurate. Errors can occur due to many factors, including:

• Interchangeable Social Security numbers
• Addresses
• Birthdays
• Identity theft
• and more

The sooner you dispute wrong information and get a resolution, the quicker you can increase your credit score. You can take additional steps to raise your credit score and improve your financial situation.

2. PAY OFF OUTSTANDING BALANCES

How you make payments makes up about 35% of your credit score. This information is the most critical piece of your credit history. If you are behind on payments, it will seriously affect your credit score. An essential step in credit repair is paying off your outstanding balances. This step improves your credit score and will save you money in finance charges.

3. AVOID MAKING NEW CREDIT PURCHASES

When you make new credit card purchases, your credit utilization ratio increases.

• Credit Utiliztation Ratio
  • Your credit utilization ratio is the ratio of any outstanding credit card balances compared to the limits on those cards. It measures the amount of credit you have available that is currently being used. To determine your credit utilization ratio, divide your credit card balances by your credit card limit, and multiply by 100. The lower the number, the better, as it shows you only use a small amount of credit.

The number of credit accounts you have opened and the number of hard inquiries you have incurred will affect your level of risk as a borrower. Opening new accounts over a short period can become a red flag to lenders and decrease your credit score.

4. TALK TO YOUR CREDITORS

You might be surprised at how helpful your creditors can be when you are working on credit repair. Many of them have hardship programs that can reduce your monthly payments or decrease your interest rate until you get back on your feet. Talk to them if you cannot make a payment, and ask about establishing a mutually beneficial arrangement. You can work with them while you pay an outstanding balance so your credit score can eventually increase.

5. WHO TO CONTACT ABOUT CREDIT REPAIR

Country Credit Club has over twenty years of experience helping people with their credit repair. We are one of the fastest companies and offer you a free consultation when you want to improve your financial future. Talk to one of our licensed specialists and learn how we can find a solution to raise your credit scores or help with other financial issues.