Five Steps to Good Credit

Improving your credit doesn't have to be a time-consuming hassle. Here are five steps the ABC's of Credit Repair recommends to improve your credit easily:

1. Correct mistakes. Always take advantage of your free annual credit reports from the three major credit bureaus. Reviewing your credit report regularly can help you maintain better credit and prevent fraudulent crimes like identity theft. When you sign up with the ABC's of Credit Repair, we can help you attain your free credit reports if you don't know how. When you review your credit reports, look for egregious errors and either have the ABC's of Credit Repair dispute them or dispute them yourself. If you let these mistakes linger, you could be denied credit or charged unnecessarily high interest rates.
2. Always pay bills on time. Late payments, especially recent ones, will substantially lower your credit score. Thus, it's critical for you to pay your bills on time. Try to pay more than the minimum, if you can. The ABC's of Credit Repair especially recommends paying your bills on time as you get ready to apply for a loan.
3. Pay down your credit card balances. A large determinant of your credit score is your balance-to-limit ratio, or the portion of your credit capacity that you're actually using. By paying down your balances, you can lower this ratio, thereby improving your credit score. Signing up for the ABC's of Credit Repair service can also help with this, as the negative items that might be driving up your rates and payments will likely be removed. Lower interest rates mean more of your money will go toward the principal of your debt, and this will help you pay your balance down faster.
4. Don't move debt around...pay it off. Don't get into the habit of transferring balances instead of paying them off. Make sure you especially avoid closing accounts to transfer the balances. Closing accounts will reduce your credit limit, which will lower your credit score.
5. Don't close unused accounts before you apply for a loan. The financial experts at the ABC's of Credit Repair recommend that you not close unused accounts around the time you are applying for a loan. Wait until you have been approved for the loan before you close accounts because it will raise your balance-to-limit ratio and hurt your score.

If you have any questions, please visit our Frequently Asked Questions page.