If your credit score has plummeted in the past year, then you should take necessary actions for immediate credit score repair.
Your credit score determines almost everything that happens in your financial life.
Not only is it used as a basis for creditors on your loan applications.
Important people such as your potential boss or landlords check your credit scores to know what kind of person you are when it comes to handling your finances.
Nowadays, a credit score is as important as your reputation.
Once it has gone bad, it needs to be fixed immediately for obvious reasons.
Your first step in credit score repair is to request a copy of your credit report in the three major bureaus.
You can do this online.
Some websites offer them free.
Now, go over each one carefully and check if there are any errors in the report.
Agencies are not responsible for correcting any errors.
If you find any, write it down and send them to the corresponding bureaus.
It would also help if you write the creditor who has committed the error in this report.
Your next step is to check the bad marks on your credit report and see what has caused them.
If these bad marks have occurred because of outstanding debts, then pay them as soon as possible if you can.
Moreover, prioritize those with the highest interest rates.
In line with this, if your bad marks come from account balances that are over seven years old, be advised that you can easily have these accounts erased from your report.
An account more than seven years old is automatically considered null and void.
Meanwhile, you should know how to condition yourself to live a life that will help you effectively in credit history repair.
Remember that your credit report is as good as your reputation.
Sometimes, it is even more important than your reputation in these financial times.
Always pay your rent and utilities, mortgages and credit card bills promptly every time.
Moving to another residence or leaving your present job to take on a new one will decrease your credit report score considerably.
Try as much as possible to maintain savings and checking accounts.
More importantly, make a budget and strictly stick to it.
For accounts that you can close, close them immediately.
Also, cut up all the credit cards that you are not using and pay off their balances as soon as you can.
If you do not generate enough revenue in a month, you can sell your valuables or liquidate some properties that will help significantly in your credit score repair.
Live within your means and buy only the barest essentials that are needed to survive.
This would include food, gas, shelter and the like.
As much as possible, prioritize your debt payments.
A credit score repair does not happen overnight.
It will take time before you actually see a considerable change in your reports.
Nevertheless, once you have established a good credit score again, the credit score of the past would not really matter.
Therefore, it is important that you get your credit score up as soon as you can in order to enjoy financial freedom in the near future.