4 Easy Ways to Repair Your Credit Score

If you are one of the millions of people who has struggled with poor credit, here are some easy ways to repair your credit score. Not only can you repair and improve your credit score, these may also help you to get out of debt and change your budget for the better.

Some people would argue that you don't need a good credit score, if you don't plan on taking out debt.  However, having a good credit score can be important to getting a mortgage at the best interest rate (even if you do pay cash for your cars and have no credit card debt).

To repair your credit score, you typically have to pay off debt and have bad dings removed from your credit report.  There are several ways to make this happen safely and easily, and here are some of the easiest methods for you to try.

Easy Ways To Repair Your Credit Score

Double check our credit report. Often times there are things on your credit report that are incorrect or not yours. Go over your credit report in detail to repair your credit score by making sure you aren't being dinged or charged with debt that isn't your responsibility.  You can check your credit report for FREE each year through AnnualCreditReport.com.

You may also want to make sure that there are no creditors showing missing payments you know have been made. Give the creditors in question a call to find out details, and ask for bad reports to be removed as necessary.

Negotiate to pay off or pay down existing debt. If you have what is called revolving credit and are struggling to make minimum payments, give your creditors a call. Unpaid accounts are much worse on you than stretching that credit account longer to pay off in a way you are able.

If the minimum payments are just too high, and you end up not making full payments, you can easily find bad dings on your credit report. Call the creditors and ask for a lower payment. This usually requires an account to be suspended until you are caught up, but this isn't a problem if you are serious about paying off debt and improving your credit score.

Take out a store or gas credit card to be paid off monthly. If your credit score is low but not bad, you may be able to get a gas card or store credit card to use only in their stores.  This can be great for your gas purchases since they are smaller amounts and can easily be paid off each month. It could also be great for a store that you use on a regular basis and can budget into your monthly bills to pay off easily.

Whatever you do, make sure you are not spending more than is budgeted and that you can pay off each month. The goal of this method is that using credit and paying it off will build your credit score naturally.

Take out a small bank loan. If you have a good relationship with your local bank, you may be able to take out a small short term loan and pay it off. A loan for $500-$2,000 that can be paid off within a year is a great way to build and repair your credit score without putting yourself into debt.

One of the best methods to manage this is to put this money into a savings account and set that account up to pay it back each month. You can pay off the loan early to avoid interest costs, but most bank loan interest for these types of loans is minimal and worth the small extra expense to build your credit score.

Just remember, repairing your credit score takes time.  Unfortunately, credit scores will not elevate fast. Only in special instances will you find one raising more than 40-50 points per year. Be patient and consistent over several years to help your chances of making larger purchases with a better credit score.

And of course, use common sense.  Don't repair your credit score just so you can get further into debt (other than a mortgage).