Has your poor credit score been keeping you up at night? If yes, there are two things you need to know. Indeed, after reading this article, you will sleep much better tonight.  

The first is that you are not alone. While that in itself may not be a consolation. It helps to know that there are other people in your position. 

Research shows that up to 16% of Americans have poor credit scores. That means they’re in the range of 300 to 579 FICO scores. And only 1.2% are within the perfect 850 credit score.

The second good news is that you can take steps to rebuild your credit score. Some will require adjustment on your part. Others may need help from credit repair companies. 

Here is what you may not know at this point. A poor credit score is not always indicative of poor financial management. A simple error in a report can have a profound impact. As we delve into the second point a little more, you will understand what this means. 

1. Pay Keen Attention to Your Credit Report

How often do you check your credit score? If you haven’t been keeping up, it is time to do so. There could be inaccuracies or errors in your report. Such include wrong entries, inaccurate balances, misspelled names, and more. All these could cause your credit score to drop.  To improve your credit score you can hire legalconsumeradvocate.com to help you. Credit score experts will help you comb through your report and identify any errors. They will then dispute these with the credit bureaus on your behalf.

You can get a free annual report from the three credit bureaus. These are Experian, Transunion, and Equifax. Keep up with monitoring the reports. 

2. Get Credit Repair Services

What happens if you see a mistake on the credit report? The credit bureaus have channels that you can use for dispute resolution. Yet, anyone who has gone through the process will tell you how difficult it can be.  

There is a lot of back and forth in the communication with the bureaus. You must have proof that indeed, they made a mistake. One good option is to hire experts in credit repair.

There are tons of affordable credit repair professionals you can turn to. The experts will:-

• Monitor and provide feedback on your credit report on an ongoing basis
• Identify any errors or inaccuracies, and take the relevant steps to correct them
• Help pay down debt so that you get back to a healthy financial state
• Remove retired debts that are still in the credit report
• Remove any entries such as bankruptcies that the bureaus may have assigned erroneously to you.
• Keep up the communication with the reference bureaus. Established credit repair professionals have networks that allow them to do the work with the highest efficiency.  

Please make sure you do proper due diligence before contracting any company. Top-rated credit repair companies will not ask for payment before completing the work. There have been cases of scammers posing as credit repair professionals. They may, for example, guarantee the removal of negative reports. Yet, removing such information can be difficult, if it is factual.  

Also, be wary of credit repair companies that advise on schemes or underhand ways to repair your credit report. They may recommend opening an alternative report by changing some of your details.  

3. Keep Up With Debt Repayment

Skipping or delaying payments will impact your credit score. The bureaus get the information from credit card companies that report to the reference bureaus. The same applies to suppliers or lending institutions.  

Anytime you miss the balance payment, they will share the information with the bureaus. The latter will reflect the same in your credit score. Make sure you never get to the 30-day deadline for payments.  

Signs of proper financial management include an ability to manage debt balances. Develop a budget and live by it. Expenses should never be higher than income. 

Put any extra cash that comes your way to lessen the amounts. Setting automatic payments will ensure that the balances go out on the right date. 

4. Consider Debt Repayment Strategies

Consider different strategies to help pay debt faster. Debt consolidation is one effective way. You take a loan to pay off all the existing debts. 

Transferring multiple balances to a balance transfer credit card can help. The issuer gives a 0% interest-free window when you sign up. It varies from lender to lender but can go from 6 months to one and a half years. You can get relief from paying interest on the amounts within this time. 

Do take the time to read the documents with a keen eye. Some will come with a hefty transfer fee, ranging from 3 to 5% of the total balance.  

5. Increase the Credit Card Limit 

Ask the credit-card issuer to give you a higher limit. But, don’t start satisfying your shopping urges just yet. The trick is to keep the utilization rate low. For best results, try to stay below 30% of the credit card limit.  

The other workable option is signing up for a new credit card. The downside to this is the issuer may make a hard inquiry on your credit report. You will end up losing about five points. Don’t fret, though. By following the tips we share, your scores will soon bounce back. 

Credit repair professionals will keep an eye out for any erroneous hard inquiries. Removing such information from your credit history is a good idea. The difference in your credit score may not be very very big. But, any minor victory helps when building your credit score. 

 Final Thoughts

A good credit score has tons of benefits. Some lending institutions will only give money to those with a good score. Even with a poor one, you may still qualify for loans. But, the interest in such can be very high, making them expensive in the long run.  

A poor credit score can also impact other areas of life. Some employers will not hire you because of that. You could also find it challenging to get an apartment or lease a building. 

The same applies if you’re running a business and require credit facilities from suppliers. Some will check your credit history before expanding the facilities to you.