Self-Repair Credit Advice

Why pay a credit repair company money to fix your rating when you can raise your credit score on your own? Credit scores reflect your credit habits, and repairing a bad rating calls for changing the way you manage your bills and debt. Build a good credit score and you're on the road to lower interest rates and easy loan approvals.

Avoid Lateness

One method of credit repair involves avoiding lateness or delinquent accounts. Creditors establish due dates for accounts, and sending in a payment past this date results in late fees and negative information on your credit report. Not only does this lower your credit rating, but frequent lateness can result in credit denials in the future. Increase a low credit score yourself by paying statements on or before the due date. Submit payments online through the company's website, or write and send a check several days before the due date.

Lower Credit Card Balances

Your balances on credit cards are a big factor in determining your credit rating. Repair credit yourself by devising a plan to get rid or at least pay down your high balances. Ideally, credit card utilization should be less than 30 percent of the credit limit. Therefore, if you are given a $1,000 limit, your balance should stay below $300. Owing more than 30 percent of your balance or completely maxing out your cards has a damaging effect on your credit score.

Use Credit Cards in Moderation

While you don't want to max out your cards or accumulate high balances, occasionally using credit cards can help build a good score. Credit scores increase when you use credit and pay off or satisfy the debt. For this reason, it's wise to keep at least one credit card on you and periodically use this card for inexpensive purchases. Paying off the balance in full each month is key to building good credit and keeping your debt to a minimum.

Benefits of New Credit

Don't be afraid to acquire new credit after a bankruptcy. And if you don't have a credit history, applying for an account is key to establishing a good record. It's challenging to get credit with a history of bad credit or no credit history. Banks offer secured credit cards to help people in this predicament. These involve a security deposit that acts as collateral, and banks will approve applications as long as you have steady income. As you make monthly payments and manage the account well, banks and creditors will report the information to the credit bureaus, which helps to repair bad credit history or build a good credit history.