How to Improve your Credit Score to Avoid Credit Dispute



Credit dispute occurs when a consumer files a dispute letter. There are several ways in which one can repair or improve their credit score in order to avoid credit dispute.

What can a bad credit score do?

Having a good credit score will help to avoid credit dispute and will help anyone to get more credit limit of needed. This would also limit the borrowing options of a person. Moreover having a poor credit will leave a bad credit report.

Let’s take a look at some of the ways in which credit score can be repaired. These ways will not help improve the credit score, but will also improve credit report.

1. Minimise the number of new credit cards

In order to ensure that your credit score remains high, minimize the number of credit card you are purchasing in a short while. The purchase of a new credit card is shown on the credit report, so it’s better to lessen the purchase for a while. It is so because applying for more credit cards shows that a particular person is more liable to go for purchase on credits. Hence this does not show a good credit score.

2. Minimizing the purchase on your credit card

The best thing to do is to minimize the purchase limit on your credit card. The appropriate expenditure from any credit card should be 10% on the credit limit. Even if someone is utilizing the maximum of credit limit and repaying in full later, shows low credit score.

3. Pay bills at the earliest

To maintain a good credit score, it is essential that a person should pay off his or her credit bills as and when possible. It is not advisable to clear off all the bills at once, which could be delaying. Much better is to make small payments as and when you are able to pay off.

4. Maintain active credit cards

It is not sufficient to just keep credit cards, moreover better is to keep all the credit cards active. Regularly utilizing the credit card is important. This will show in the report that a person is utilizing his or her credit properly. It is always to keep in mind that closing credit card will decrease the credit score.

5. Ask for more credit

There is never a problem asking for more credit in case a person is more frequently using credit card. But it should be kept in mind that asking for a credit increase should be done only in case when you are properly able to manage the card.

6. Reviewing your credit report from time to time

Reviewing your credit report from time to time will help to find out any inaccuracies or incorrect credit limits etc. Many times errors are present on credit reports, hence reviewing the report at regular intervals will help to fix these errors. Reviewing the credit report of oneself is totally free of cost.

Keeping these tips in mind will help to maintain a proper and good credit score. One can also check credit repair letters templates to know how these should be drafted.

Comments Closed