12 Tips To Get Your Credit Back On Track

Thank you CreditRepair.com for sponsoring this post. CreditRepair.com’s team understands that a credit score is not just a number; it’s a lifestyle.

Credit is definitely the kind of thing that when you need it, you really need it. You hear it over and over again: make sure you have good credit and maintain a good credit score. And if you’ve ever tried to apply for a car loan, lease an apartment or shop around for a home mortgage, you know how important it is.

Having a good credit score means when you do go and apply for those loans, you’ll be approved with lower interest rates which depending on the size of the loan can end up saving you thousands of dollars over the life of the loan. Lower credit scores often come with loan denials, and even if you do get approved, they come with much higher interest rates. That means a lot more money out of your pocket in the long run.

But we’re all human, and mistakes with our credit can happen if we’re not careful. It did to me. I’ve always been vigilant about keeping my credit cards paid on time to maintain a great credit score. But about two years ago I was in the middle of a move, and a credit card I had on autopay raised the minimum monthly payment on the card without my knowledge and without notifying me (yes, they can do this and there are no laws stopping them).

Even though payments were made, since the new minimum payment wasn’t being satisfied it was then considered late. I had no idea. This company filed a 30-day late payment mark against my credit and refused to remove it, even though they removed all fees, acknowledged there was no communication and apologized for the situation.

Even after years of great payment history, this one little mistake caused a huge 65+ point dip in my credit. And once your credit dips you quickly realize how it affects just about every aspect of your financial life and financial freedom. Unless you have the cash, you can no longer just go out and buy a house or car or home. The fact is that lower credit scores can cost you big money. After diligent work, I’m almost back to the credit score I once had of 750+. Luckily our credit scores aren’t set in stone, and it’s never too late to get it back on track.

If You’re Looking to Rebuild or Repair Your Credit, Here Are 12 Tips to Getting Your Credit Soaring Again

1. Know What You’re Working With: Get Your Credit Report

Unfortunately, acting as if your credit doesn’t exist isn’t going to make it any better. The first thing to do when you make the decision to repair your credit is to get your credit report to find out what your scores are and what, if any, negative marks you may have.

The Fair Credit Reporting Act (FCRA) makes you entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting agencies. You can access these reports through AnnualCreditReport.com, the only authorized source for free credit reports.

It will have all three nationwide credit reporting agencies’ scores and give you the information you need to get started on your credit repair journey. Even if you know you’re doing everything right, there may be information on there that isn’t correct and is affecting your score. In fact, research shows that a significant number of consumers have errors on their credit reports that could be hurting their scores.

2. Always Get Those Payments in On Time

This one might seem obvious, but it’s the number one best habit when either trying to raise your score or keep it on track. Payment history makes up 35% of your FICO score, making it the single most important factor in your credit calculation.

If you find it difficult to remember when your credit card payments are due, set up alerts on your phone or mark a calendar on your wall. Setting up autopay for as many payments as possible can help keep you on track as well. But even with autopay, be sure to learn from my mistake and check in with your accounts to make sure they are being processed correctly.

And remember, you don’t need to carry a monthly credit card balance to build your credit. Paying off your credit card bills every month can be just as effective and will save you money on interest charges.

3. Keep Your Credit Utilization Below 30%

Your credit utilization ratio is the amount of credit you’re using compared to your total available credit. This factor accounts for 30% of your FICO score, second only to payment history. Lenders typically like to see low utilization ratios of 30% or less, though experts recommend aiming for single digits (under 10%) for the best results.

To calculate your utilization, add up all your credit card balances and divide by your total credit limits, then multiply by 100. For example, if you have $3,000 in balances across cards with a combined $10,000 limit, your utilization is 30%.

Here’s the good news: unlike payment history, credit utilization can improve your score almost immediately. Once you pay down balances and your creditor reports the lower balance to the credit bureaus, the positive impact shows up right away.

4. Stay Ahead of the Game by Monitoring Your Credit

Usually, when I hear words like “report” or “monitoring” I generally start daydreaming about my weekend plans. But listen to this: to get your credit game on point, you need to know what you’re working with. And that means getting alerted to any changes (good and bad) to your credit.

To make things easy (we like easy), CreditRepair.com credit monitoring technology provides their members with a personal online dashboard, a credit score tracker and analysis, creditor and bureau interactions, with text and email alerts, mobile apps and credit monitoring.

💡 Crazy Credit Fact: Right now millions of Americans have inaccurate or unfair negative items on their credit reports that are wrongfully hurting their score.

5. Dispute Errors on Your Credit Report

Found something wrong on your credit report? Don’t ignore it. You have the legal right under the FCRA to dispute errors with both the credit reporting companies and the company that provided the information.

The Consumer Financial Protection Bureau (CFPB) provides sample dispute letters and guidance on how to file disputes effectively. When disputing, include all relevant documentation like account statements, payment records, or proof that an account isn’t yours.

Credit reporting companies must investigate your dispute within 30 days. If they find the information is inaccurate, they must correct or remove it. Common errors include accounts that have been paid off but appear as unpaid, debts incorrectly reported in collections, mixed files (when someone else’s information appears on your report), and fraudulent accounts from identity theft.

6. Don’t Close Old Credit Card Accounts

I get it. You want to get serious about your finances and boosting that score. But did you know closing out credit card accounts can actually hurt your score? Canceling cards lowers your overall available credit amount while raising your credit utilization, which can generally lower credit scores.

Additionally, closing old accounts shortens your credit history. The length of your credit history accounts for 15% of your FICO score, and closing your oldest card can significantly reduce your average account age.

A smarter credit-building strategy is to keep unused card accounts open and not use them while paying others down. If a card has an annual fee you no longer want to pay, call the issuer and ask if you can product-change to a no-fee version instead of closing the account entirely.

7. Make Multiple Payments Per Month

Here’s a strategy many people don’t know about: you can make payments more than once per month. Credit card issuers typically report your balance to the credit bureaus at the end of your statement period, not when your payment is due.

This means if you charge $1,000 during your billing cycle but pay it off before the statement closes, the credit bureaus may see a $0 balance instead of a $1,000 balance. This keeps your reported utilization lower and can give your score a quick boost.

If you’re working on building credit, consider making small purchases and paying them off immediately, or make payments throughout the month rather than waiting for the due date.

8. Diversify Your Credit Mix

Credit scoring models look at your credit mix, which accounts for 10% of your FICO score. This includes different types of credit like credit cards (revolving credit), car loans, mortgages, student loans, and personal loans (installment credit).

Lenders want to see that you can responsibly manage different types of credit accounts. That said, don’t take out loans you don’t need just to improve your credit mix. But if you’re already considering a necessary purchase or loan, having a healthy mix can help your score.

For those just starting out or rebuilding credit, a secured credit card or a credit-builder loan can be good options to diversify your credit profile while building positive payment history.

9. Limit Hard Inquiries and New Credit Applications

Every time you apply for credit and a lender checks your credit report, it creates a “hard inquiry” that can temporarily lower your score by a few points. New credit applications account for 10% of your FICO score.

While one or two inquiries won’t cause major damage, multiple applications in a short period can signal to lenders that you’re a risky borrower. The exception is rate shopping for mortgages, auto loans, or student loans. These types of inquiries are typically counted as a single inquiry if they occur within a 14 to 45-day window, depending on the scoring model.

Before applying for new credit, check if the lender offers prequalification, which uses a soft inquiry that won’t affect your score. This lets you see if you’re likely to be approved without the credit hit.

10. Consider Becoming an Authorized User

If you’re starting from scratch or trying to rebuild after significant credit damage, becoming an authorized user on someone else’s credit card can help. When you’re added as an authorized user, the account’s payment history and credit limit may be added to your credit report.

This strategy works best when the primary cardholder has excellent payment history, low utilization, and a long account history. Make sure the card issuer reports authorized user activity to all three credit bureaus for maximum benefit.

This can be particularly helpful for young adults building credit for the first time, or for anyone recovering from past credit mistakes who needs a boost while they work on their own accounts.

11. Don’t Obsess: Building Your Credit Back Takes Time

There’s a lot that factors into how your credit score is calculated, including payment history, credit length, balance amounts, whether you have a mix of credit (credit cards are different than mortgages, school, and car loans), if there are any negative reports, and more.

Realize that while it might take months for some to build their credit, it may take a year or two or more for others. The most important thing is committing to financial freedom and taking charge of your credit score to get back on track.

Focus on building sustainable habits rather than looking for quick fixes. Consistent, on-time payments and responsible credit use will improve your score over time. Consider setting up healthy financial habits that support your credit goals.

12. Don’t Beat Yourself Up: Get Help if You Need It

While a great credit score can be important in helping you achieve some of your life’s financial and lifestyle goals, it’s still just a number. With time and a little diligence on your part, it will get better over time. Yes, a good credit score can help you achieve your dreams and live your life a little extra.

But it’s not written in stone, and you are more than a credit score. If you want to fix your credit but feel overwhelmed, call CreditRepair.com for a free consultation. With over 500,000 clients already served, they have professionals that can help guide you through the confusing and sometimes stressful credit repair process.

You can also contact a nonprofit credit counseling agency approved by the National Foundation for Credit Counseling for free or low-cost assistance. These organizations can help you create a debt management plan and provide education on building better credit habits.

Understanding Your Rights Under Federal Law

As a consumer, you have important protections under the Fair Credit Reporting Act. These rights include:

• The right to know what’s in your credit file
• The right to dispute incomplete or inaccurate information
• The right to have credit reporting companies investigate your disputes
• The right to have inaccurate information corrected or removed
• The right to sue for damages if the FCRA is violated

If you believe your rights have been violated, you can file a complaint with the Consumer Financial Protection Bureau online or by calling (855) 411-CFPB (2372).

Quick Action Steps to Start Improving Your Credit Today

Ready to take control of your credit? Here are immediate steps you can take:

1. Pull your free credit reports from all three bureaus at AnnualCreditReport.com
2. Review each report carefully for errors, unfamiliar accounts, or inaccurate information
3. Set up payment reminders or autopay for all your accounts to ensure on-time payments
4. Calculate your credit utilization and create a plan to get it below 30% (ideally under 10%)
5. Dispute any errors using the CFPB’s sample letters and guidance
6. Sign up for free credit monitoring to track your progress and catch new errors quickly

What Is Your Bad Credit Costing You?

CreditRepair.com is a trusted leader in credit repair. Visit them today to start climbing back to the top. Know your credit, repair your reports, and live your life.

Remember, improving your credit is a marathon, not a sprint. Stay committed to these strategies, be patient with the process, and celebrate small wins along the way. Whether you’re working toward travel goals, saving for a home renovation, or planning for your financial future, a healthy credit score opens doors to the life you want to live.

Frequently Asked Questions About Credit Repair

How long does it take to repair bad credit?

The timeline varies depending on your situation. Minor issues like a single late payment may improve within a few months of good behavior, while major issues like bankruptcy can affect your credit for 7 to 10 years. Most people see noticeable improvement within 3 to 6 months of implementing good credit habits.

Can I remove accurate negative information from my credit report?

Generally, no. Accurate negative information like late payments, collections, or bankruptcies will remain on your credit report for 7 to 10 years depending on the type of item. However, you can dispute inaccurate or incomplete information, and you can request goodwill adjustments from creditors in certain circumstances.

Will checking my own credit score hurt it?

No. Checking your own credit score is considered a “soft inquiry” and does not affect your score. You can check it as many times as you want. Only “hard inquiries” from lenders when you apply for credit can temporarily lower your score.

What’s the fastest way to improve my credit score?

The fastest improvement typically comes from paying down high credit card balances to lower your utilization ratio. Since utilization is recalculated monthly, you can see score improvements within 30 to 60 days. Disputing and removing errors can also provide quick improvements.

Do I need to pay for credit repair services?

Not necessarily. You can dispute errors on your credit report yourself for free using resources from the CFPB and FTC. However, if you’re overwhelmed or dealing with complex credit issues, a reputable credit repair service like CreditRepair.com or a nonprofit credit counseling agency can provide valuable guidance and support.