How to Repair Your Credit Score Fast With Affordable Measures

Life never runs on a fluent track; you have to go through several phases of ups and downs. In the lowest moments of life, you need both emotional & financial support. If nobody is there to help financially, contacting banks and other financing firms for help is the only option. The allow a certain sum of money after studying your previous track record of transactions. This record is represented in numeric figures called credit score. A positive credit score for allowing loan remains between 600 to 750. Generally, the pie chart of credit score spans between 300 to 850. Accounts with a credit score below 560 are considered in the poorest category and have very fewer chances to get a fresh loan. Scroll down to know why your credit score goes down.

 Reasons behind a bad credit score

Late payment history

Late payment is the most common reason why your account fell into a bad credit score category.  There is a monthly bill payment for every account. You need to pay before the date passes. With credit cards, some banks also allow you an extended period of 10-20 days for returning back without charging any rate of interest.

Account send to a collection agency

If the loan is unpaid for a long time and you are not paying attention to the calls of an agency, they will send your account to a collection agency. After sending your account to the collection agency’s database, its reputation goes down along with credit score.

Expensive purchase

If you bought an expensive item which is crossing a safe limit beyond your earning capacity, the credit score automatically falls down. However, it gradually rises when you start paying the instalments regularly.

Write-off and settlement history

Written off account has the worst reputation in credit score files. These accounts are written off by financial institutions after marking as bad debtors. It means there is no hope of getting back the money. They simply write-off the account and restrict you from applying for any fresh loan.
Now, the question is how to repair my credit fast? Scroll down to know some popular methods.

Important Tips to Repair Your Credit Score

Timely payment of bills and instalments

Whenever you get a loan or pay bills through credit card, remember the due date of paying back. Don’t miss the monthly, quarterly or any instalment option that you have selected. If your payments are going timely, they will also increase the credit limit & the credit score will remain at a positive level.
Less use of credit limit
While using your credit card, never go beyond a limit of at least 30% of the total credit limit. Try to use your debit card wherever to prevent such kinds of situations. It creates a positive image of your account in front of the lender.

Clean credit report

There are several online service providers offering you free of cost credit score calculation too. Just fill the essential fields in their online form and submit it to know your current credit score. They also provide a repair checklist. If you check out this list, the score will automatically rise above 700.

Hire a credit repair agency

If personal efforts are not worthy enough, then how to repair your credit score? The answer is hiring a credit repair agency. They are the professional finance management experts who deal with the lenders on your behalf. Such kinds of service providers negotiate with the lender to reduce your instalment amount and interest rate.

Those who are facing the situation of bad credit score with their account can implement all these measures one by one. 

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