SIFE Financial Corner

U-News Staff

Two ways to mend bad credit

Get Annual Credit Reports

Every year, make sure to get a copy of your credit reports from all three national credit bureaus – Experian, Equifax and TransUnion. A thorough analysis for the accuracy of all information contained within the reports is extremely important, as even a single error might make or break your score. Any errors found in the information should be immediately disputed by promptly reporting the inaccuracy to the national bureaus. Making sure that you follow through with these disputes will significantly improve your credit score.

Pay back debt on time

Pay back your debt … on time. Of your credit score, 30 percent is comprised of a “utilization ratio”: how much of your available line of credit has been accessed at any given point. The higher the ratio, the lower your credit scores. Thus paying back credit card debts quickly is key in improving your credit. This can be done by coming up with a realistic payback schedule. Keep track of the amount of credit you use and what kind of items you purchase. This is extremely important, as some items have certain “terms and conditions” to ensure harsh punishment is enacted on those that default. Thus, knowing what to pay back first and exactly how much to pay back is vital in maintaining a good credit score.

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