Credit repair can seem like a daunting task. If you have lots of payday loans, personal loan debts, student loans, credit cards, and other debts to repay you may owe tens of thousands of dollars and it may take you years to repay all your loans. However, you don’t have to wait years to start improving your credit score. There are things you can do right now to start boosting your credit score:
1) Get organized. The first step is to gather all your paperwork and review the situation. Who do you owe money to and how much do you owe? What are your monthly payments like? Draw up a budget – how much can you put towards your debts each month? Can you afford your debts or do you need debt consolidation or a restructured payment system? If you can afford your debts, consider automatic payments for your loans so that you are never late with your bills.
2) Order your credit report. Reading your credit report and fixing any errors takes less than an hour but can have a dramatic impact on your credit score.
3) Pay off one bill. Choose the smallest bill – maybe a payday loan or a small personal loan — and pay it off. This takes only a minute but makes you feel instantly better and starts you well on the path to credit repair.
4) Choose a bill to focus on. Find the bill that is costing you the most in high interest and decide that you will focus on this bill first. Post the bill where you will see it. Over the next few months, focus on repaying this bill as quickly as you can.