Who Can Help You Fix Your Credit (for Free)
Improving your credit score can feel overwhelming on the best of days. Adding to the stress is the fact that there’s no official guide to help you navigate this challenging process. But you can take solace in the fact that you’re not alone in this struggle—over 100 million Americans have no or poor credit.
The good news is that raising that three-digit number called a credit score is possible. And you can do so yourself without paying a single dime for help. With a little patience and the right strategies, you can take control of your financial health and watch your score soar to new heights.
Read on to learn more about how to get your credit repaired for free.
UNDERSTANDING YOUR CREDIT SCORE
A credit score is a numerical representation of your creditworthiness. Lenders use it to assess how likely you are to repay borrowed money. Your score is influenced by your payment history, utilization rate, account longevity, recent inquiries, and account diversity. Each of these factors plays a role in determining your overall score.
Even if just one of the factors shows signs of potential instability, your score could plummet. For example, a person could have no collections on record and perfect payment history. However, if their utilization rises above 30%, their score will most likely drop until they get that percentage down.
YOU ARE YOUR BEST ADVOCATE
You might wonder, “Who can help me fix my credit?” Well, the answer may surprise you. The #1 person who can help you repair your credit is—you. Not your friend. Not your co-worker. Not your sibling. Only you.
While that may seem downright impossible, it’s easy once you set your mind to it. You just have to set clear and achievable goals and stick with them over a period of time. Remember that there are no quick fixes or shortcuts on the road to credit repair.
THE CREDIT REPAIR ORGANIZATIONS ACT
Over the past few decades, many people have been taken advantage of by fly-by-night “credit repair specialists.” This led the government to step in and do something about these fraudulent practices.
The Credit Repair Organizations Act is a crucial piece of legislation designed to protect consumers seeking credit repair services. It mandates honesty about achievable outcomes and forbids misleading claims about improving credit scores.
This act ensures consumers are not charged before services are performed. It emphasizes transparency and the right to a written contract that can be canceled within three days.
PRACTICAL TIPS TO REPAIR YOUR CREDIT
Setting realistic expectations for the credit repair process is essential. It can take multiple months or years to achieve a good score. It’s a gradual process that involves careful financial management and adherence to best practices.
There are several steps you can take to rebuild your credit over time. However, you must first obtain a copy of your current credit report. Consider it a road map that will help guide you through the process.
OBTAIN A FREE COPY OF YOUR CREDIT REPORT AND REVIEW FOR MISTAKES
You are legally entitled to obtain one free annual credit report from each of the three major credit bureaus. Carefully review everything on your report and use the online form provided by each credit bureau to dispute any inaccuracies. This process can take some time but might lead to corrections that improve your score.
BUILD A GOOD PAYMENT HISTORY
Boosting your credit score is crucial and one way to achieve this is by improving your payment history. By setting up automatic payments, you can ensure that you never miss a due date, positively influencing your credit score.
If you're facing financial hardships, it's important to proactively manage your debts by negotiating payment plans with lenders. Making timely payments is critical for anyone looking to build their credit since it shows lenders you are financially reliable.
CREDIT UTILIZATION MANAGEMENT
Managing your credit utilization ratio is a powerful way to influence your credit score. Keeping this ratio under a recommended percentage—ideally below 30%—demonstrates to lenders that you can handle credit responsibly.
You can calculate your credit utilization by dividing your total credit card balances by your total credit limits. Paying down your balance and carefully managing new credit lines will reduce this ratio.
THE IMPACT OF NEW CREDIT
Applying for new credit introduces hard inquiries into your credit report, which can temporarily lower your score. It’s important to be strategic about when to apply for new credit. Try to space out applications over the course of a year to minimize their impact.
This approach allows you to manage your credit wisely, ensuring that new credit opportunities support rather than hinder your financial health. Understanding the timing and necessity of each application can help maintain a stable credit score.
HOW FINANCIAL COUNSELING CAN HELP
Financial counseling can be a valuable resource for those who feel overwhelmed by debt or unsure of how to start repairing their credit. Various types of counseling are available, from basic budgeting assistance to complex debt management plans.
These services provide personalized advice tailored to your individual financial situation. GHS FCU offers financial counseling services that include:
Credit score coaching
Family financial planning
Debt repayment
Retirement planning
Estate planning
Back-to-basics budgeting
Financial crisis counseling
And more!
We believe there is no such thing as a one-size-fits-all solution when it comes to getting your finances back on track. This is why we strive to focus on helping our members improve their financial health through a personalized approach.
YOU’RE NOT ALONE—GHS FCU CAN HELP
Improving your credit is a journey that requires time and consistent effort. Remember, you can make positive changes in your financial life. Take the next step by visiting our FINANCIAL WELLNESS PAGE for more information about our counseling services.
CLICK HERE to set up a meeting with our certified financial counselor. She will help you create a plan to achieve your financial goals.