5 Step Credit Repair Checklist

Bad credit can be frustrating: if you need a home loan or mortgage it can be close to impossible to get one and you might even be receiving calls about mounting debt. However, your credit can be repaired and improved with some patience, organization and responsibility! While you may not be able to improve your score overnight, if you follow these steps you will be on the path to recovery without the chance of a quick fix backfiring on you.

1) Read your credit report. Credit documentation is not infallible and if you find any mistakes then you can have them corrected and instantly improve your score. One of the more common mistakes is falsely reported late payments and errors in the amounts charged. If your credit report says you made payments late but you know you made those payments on time, contact the credit bureau and reporting agencies.

2) Remind yourself of dates when credit card payments are due. Be sure to mark these dates on your calendar, set alarms on your phone or try asking your bank to send you email reminders. Making credit card payments on time is an important step to improving your credit score. If you only use your credit card for things you know for sure you can pay off then your credit will benefit from use of the credit card.

3) Set up a budget for yourself that will allow you to reduce some of your debt. Look at your bank accounts to see how much you owe so you can come up with a reasonable payment plan. This is one of the harder steps, but the less debt you are in the less you will have to pay in interest. Set aside as much money as you can from each paycheck that will go towards reducing debt.

4) Try using an old credit card. If you had good credit in the past but discontinued use of the card, your lender may have stopped reporting the good credit to the credit bureau. Bringing back an old card and using it responsibly can add old better credit to your report. Only use one or two of your best cards so you can keep track of what you’ve spent and on what card more easily.

5) Get a secured credit card. If you have trouble limiting your spending, a secured credit card can force you to stop overspending. This type of card typically requires you pay a certain amount as a down payment and the amount you paid is your spending limit. This means you will always make your payments and using this type of credit card still works to improve your credit history.

Remember credit repair can take time so be patient; your credit score will improve once your credit history has improved and that could take some time. If you are looking to own a home and are on the road to repairing your credit search our database of rent to own homes to find the perfect home that you can work toward owning while you fix your credit!