Service Plus Credit Union

Financial Smarties: Simplify Your Credit

Posted on April 12, 2021 at 5:05 PM by Service Plus

If you recently pulled your credit report as suggested in our post Financial Smarties: Know Your Credit, you may have seen some things that need to be cleaned up in order to simplify your credit.  After all, a messy credit report with incorrect data or collection accounts can complicate your financial life. Though credit reports are widely known to be used for when applying for loans, it can also play a role in job applications, insurance rates and renting a place to live.

How do we simplify? Here are some tips:

To Fix Errors: Start with filing a dispute with the credit reporting agency (Experion, TransUnion or Equifax).  The Federal Trade Commission explains the easy step by step process here.

To Fix Bad Credit: Don’t fall for companies that offer a quick fix or bad credit elimination.  The only way to change your credit score are through good habits over time such as:

  • Getting current and staying current on accounts as quickly as possible.

  • Making your payments on time.  Set up reminders or alerts as needed.

  • Applying for credit only as you will use, need and can pay on time.

  • Not opening extra credit lines to spread your debt around.  Instead, pay down what you have.

  • Re-establishing credit (if necessary) with a small secured loan that you can afford to which you can make timely payments.

Also, don’t try closing all unused accounts at once to try and increase your credit score and get rid of past history.  It doesn’t work that way and can sometimes work against your score. Instead focus on good habits going forward.

Categories: Financial Smarties

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