This is the Easiest Way to Fix Your Credit Score
- This is the way to fix your credit score if you don’t have or make a lot of money.
- If you pay for someone to fix your credit, they’ll do mostly this stuff. So, save your money.
- My credit score went from 600 (poor) to 720 (fair) in 1 year and from 720 (fair) to 790 (excellent) in another year doing EXACTLY what I’m sharing.
Fixing Your Credit and Keeping It Fixed – Basics
- NEVER pay bills late
- NEVER miss payments
- NEVER let anything go to collections
- Get bad shit off your credit report ASAP
- Keep at least 1 credit card account open, used, and being paid, on time, every month.
- Whatever you’re approved for or credit limit you’re given, ALWAYS keep the balance under 30%.
1. Find Your Actual Credit Score:
Every 12 months, Equifax, Experian and TransUnion, are required by law to give you a FREE credit report upon request.
Here’s how to do it:
- Go to: annualcreditreport.com
- Fill out form – name, birthday, social, address
- Choose reports you want – choose from Equifax, Experian and TransUnion
- Request and review – online or mail (choose online, duh)
To see your credit score more often: Use Equifax, Experian and TransUnion. All free and they allow you to login and check whenever you want.
Here’s what it should look like:
2. Dispute ALL Negative Items
How it works: You’re legally allowed to dispute EVERY negative (derogatory) item on your credit report every 30 days. The creditor or company who put that information on your credit report has 30 days to respond and say it’s legit. IF they don’t respond, BY LAW, it automatically comes off of your credit report – forever. They can’t do anything about it. Each one that comes off boosts your credit score by 10 to 50 points each.
Do this:
- Dispute ALL negative information every 30 days – The creditor or company only has to miss it ONCE and it comes off your credit report.
- Dispute around Christmas and New Years – The people who answer the disputes are likely to be off and more likely to miss your dispute. This is your highest chance of getting if off your credit report. Time it so the 30 days they have to respond expires between Dec 25th and Jan 2nd.
How to dispute:
- Go to Experian and log in
- Click on “Credit”
- Click on negative item you’d like to dispute
- Scroll to bottom and under “Is Everything Correct?”, click “Dispute This Account”.
Here’s what you should see:
3. Separate Your Checking, Savings, and Bills Accounts
Never spend money on dumb shit, save money, AND pay bills out of the same account.
- Through your bank, open another “personal checking” account.
- Get a debit card attached to it.
- Go to your banking app / website and nickname that new account “Bills Checking”.
- Set it to automatically pull from your personal savings or personal checking account. If bills cause you to overdraft, it will automatically pull money from your checking or savings so you don’t get charged overdraft fees from the bank.
- Go to EVERY SINGLE BILL app and website you have and update your debit card or your routing and account number. Remove your regular checking and savings accounts from ALL OF THEM. (mortgage, rent, car payments, loans, daycare, school, electricity, water, gas, apps, subscriptions, etc.)
- Make all bills come out of one single account so you can track them easier and faster.
It should look something like this:
4. Add Up EXACTLY How Much Your Bills Are
- Go through your bank accounts or statements and add up EXACTLY how much you pay in bills monthly. Down to the dollar.
- Divide that number by how many times you get paid each month.
- EVERY PAY PERIOD, auto transfer THAT AMOUNT to your “Bills Checking”.
- To be safe, do 10% more than you need.
- DON’T USE THAT MONEY FOR ANYTHING BUT BILLS!
5. Put ALL Bills on Autopay
- For EVERY bill, go to their website or app and select “Autopay”.
- Autopay makes sure you NEVER pay late or miss payments.
- Select “Bills Checking” debit card OR “electronic funds transfer” and add your bank routing and account number. (Always select the option that doesn’t charge a convenience fee)
- Do this for ALL BILLS. It’s smarter than just remembering.
It should look something like this:
6. Get a Low-Limit Credit Card
- Find stores that offer low-limit credit cards for poor credit and no credit.
- Choose one of these: Fingerhut, Kohls, TJX Rewards (T.J. Maxx, Marshalls, HomeGoods), or Target.
- Make sure it’s “retail” or “closed loop” credit cards only for their stores. This is good.
- DO NOT get their high-interest credit card that can be used anywhere. This can be bad.
- NEVER charge or carry a balance that’s more than 30% of the credit limit. If the limit is $300, DO NOT put more than $100 on it. It’s simple math. Why? Because it’s smart. More than 30% can negatively impact your credit. It shows up on your credit report as “high usage” and it affects your score.
- Pay it off or down with Autopay. If the limit is $300 and you charge $100, set your autopay to $35 or $40 per month.
- Make sure you take 3 months or more to pay it OR just keep charging small items to it keep it on Autopay month-to-month, making sure to never to over your 30% limit.
- Watch your credit score go up.
It should look something like this:
7. Finance Furniture
- Find a furniture stores that offers in-store financing or store credit cards for poor credit and no credit.
- Choose one of these: Rooms To Go or Bed Bath & Beyond
- Again, make sure it’s “retail” or “closed loop” credit cards only for their stores. This is good.
- Again, DO NOT get their high-interest credit card that can be used anywhere. This can be bad.
- Don’t use more than 30% – 40% of what you’re approved for. Same as the store cards, if they approve you for $8,000, DON’T FINANCE ANYTHING OVER $3,200.
- Again, pay it off or down with Autopay. If the balance is $300, set your autopay to $50 per month.
- Make sure you take 3 months or more to pay it.
- Watch your credit score go up more.
Here’s an example:
