When we were in the process of becoming homeowners, one thing I was diligent about was  keeping an eye on our credit report to make sure nothing bad happens.  I began monitoring our credit report when we started paying off debt and  enjoyed watching our scores rise….slowly…but in the right direction.  Monitoring our credit was  a great tool for us because it has allowed us to educate ourselves on how credit scores are calculated and how the whole system works.  By monitoring I have been able to raise our scores across the board by informing different bureaus that they were not reporting on a ‘good’ account.

For us, there are a few things that I have found that helped us raise our credit scores quickly and I felt that is always information that is helpful to share with others.

6 Tips for Repairing Your Credit

1. The first thing you should do, if you don’t already have them is open a checking and a savings account. I know, this doesn’t sound like much, but this is where it all begins. By opening these accounts, you are linking your name and your social security number to a financial institution. When you have a well established banking history, lenders are more likely to extend credit to you.
2. If you do not have any revolving credit, get yourself a secured credit card. This is a credit card that you can usually get through your bank or credit union or other banks such as Capital One. This is a credit care where you are the one who is funding the card by placing a security deposit in which becomes your card limit and then you pay your monthly bill. This is a great way to establish a credit history and show that you can be responsible with your credit.
3. Take out an auto loan. Yes, you read that correctly. You wouldn’t believe how much it helps your credit when you take out a loan to purchase a vehicle. Places like Earnhardt Auto Centers Dealerships (AKA Mr ED) located throughout the Metro Phoenix area, work with the Nation’s top financial institutions to help you buy or even lease the right vehicle for you and your family and offer a multitude of flexible payment options in order to best fit your budget to make it easier to stay current on your payments. Every time you make a payment, it gets reported to all three major credit reporting agencies, helping you rebuild your credit.
4. Pay all of your bills on time. This is very important. Make sure all of your monthly bills are paid on time and nothing gets sent to collections because they can all lower your credit score.
5. Check your credit report. If you haven’t, grab a copy of your credit report and make sure everything on it belongs to you. If not, dispute the items that are incorrect.
6. Monitor your credit. You can sign up with different services, some for free and some for a monthly fee to monitor your credit score each month. This will allow you to see you credit score, know when it goes up or down, if any new accounts have been opened or if anything has been closed, any inquires, etc.

By following just these few steps you should be able to raise your credit score drastically in just a few months time.