10 Best Credit Repair of 2019

Your credit score is important. The higher your scores, the more likely you are to qualify for loans and credit cards at the most favorable terms, which will save you money.

Improving your credit scores takes time, but the sooner you address the issues that might be dragging them down, the faster your credit scores will go up. You can increase your scores by taking the following steps.

1. Pay Your Bills on Time

When lenders review your credit report and request your credit score, they want to know how reliably you pay your bills.

You can improve your credit score by paying all your bills on time, including auto loans, student loans, your rent, utilities, phone bills, and so on.

2. Pay off Debt and Keep Balances Low on Credit Cards and Other Revolving Credit

The credit utilization ratio is another key number in credit score calculations. It is calculated by adding all your credit card balances and dividing that amount by your total credit limit.

Lenders typically like to see low ratios of 30% or less, and people with the best credit scores often have very low credit utilization ratios. A low credit utilization ratio tells lenders you haven't maxed out your credit cards and probably know how to manage credit well.

3. Apply for and Open New Credit Accounts Only as Needed

Don't open accounts just to have a better credit mix—it probably won't improve your credit score.

Unnecessary credit can harm your credit score in several ways, from creating too many hard inquiries on your credit report to tempting you to overspend and accumulate debt.

4. Don't Close Unused Credit Cards

Keeping unused credit cards open—as long as they don't have annual fees—is a smart strategy, because closing an account may increase your credit utilization ratio. Owing the same amount but having fewer open accounts may lower your credit scores.

5. Don't Apply for Too Much New Credit

Applying for credit creates a hard inquiry on your credit report. Too many hard inquiries can lower your credit score.

6. Dispute Any Inaccuracies on Your Credit Reports

You should check your credit reports at all three credit reporting bureaus for any inaccuracies. Incorrect information on your credit reports could drag your scores down.