If you're dealing with the frustration of poor credit history, it's easy to feel overwhelmed – that you can never make progress. However, there are many steps you can take towards rebuilding your credit score. In this post, we'll provide actionable tips to help you get your credit scores back on track.
Step 1: Check your credit scores
Your credit score, put simply, is a number that demonstrates how well you manage your finances. It helps a lender determine how creditworthy you are. If you’re trying to rebuild your credit, the first step is to understand where you stand today.
Did you know that you can check your credit score for free, and as often as you want? It's quick and easy to check your credit scores with Wisr App.
Step 2: Dispute errors or discrepancies
Your credit report holds a considerable amount of information about your financial history. It's not uncommon for errors or discrepancies to crop up which can have a negative impact on your credit score and creditworthiness.
These mistakes can range from incorrect personal information to accounts that don’t belong to you. Take the time to carefully go through your report and ensure that everything is in order.
Step 3: Pay off outstanding debts on time
Late payments over 14 days for credit cards, personal loans, auto finance and mortgages can have a negative impact and lower your credit scores.
To make sure that you are paying your bills on time, consider setting up automatic payments. This way you can rest assured that they will be paid on time, every time. Plus, you won't have to worry about keeping track of due dates or late fees.
If an outstanding payment that is $150 or more is over 60 days late, then it will be recorded as a defaultoverdue debt on your credit file.
Step 4: Create a budget and stick to it
Creating a budget and sticking to it can be a daunting task, but it’s often worth the effort. By tracking your purchases, you will be able to identify areas where you might be overspending. This can help you save money on things that are not essential, and thus, help you reach your financial goals faster.
With time, you can start enjoying the fruits of your labour and build a more secure financial future for yourself.
Step 5: Use credit responsibly
It's important to approach credit with caution. One of the most important things you can do is make sure you're making purchases that you can realistically afford. It can be tempting to splurge on a shopping spree or a fancy holiday, but this can quickly lead to a pile of debt that's difficult to overcome.
Instead, focus on using credit for necessary purchases and paying off your balance in full each month. This will help you avoid interest and fees, while still receiving the benefits that come with using credit wisely.
Checking your credit score regularly each month will help you keep tabs on your progress and you watch your score improving over time. Download Wisr App now to check your scores and take advantage of our other handy features.
Disclaimer: This article contains general information only, and is not general advice or personal advice. Wisr Services does not recommend any product or service discussed in this article. You must get your own financial, taxation, or legal advice, and understand any risks before considering whether a product or service discussed in this article may be appropriate for you. We have taken reasonable efforts to ensure that the information is accurate at the time of publishing, but the information is subject to change. We may not update the article to reflect any change.