SILVER CLINIC | I am finally free from my debt. How To Build A Good Credit Score?
It’s a good idea to start with a small account.
A Fin24 reader who has successfully paid off all her debts wants to know how she should go about correcting her bad credit rating.
Most of my accounts went to collection companies about three years ago. I tried to pay them off or settle them all and finally managed to free myself from my debts. How do I start building a good credit score? Will I even be entitled to accounts to help correct my score?
Neil Roets, Founder and CEO of Debt relief, respond :
The best place to start is to get a copy of your credit report to confirm the status of accounts that have been paid and to confirm that the credit report reflects this. If there are any discrepancies, please file a dispute with the credit bureau.
There are many factors that are important with a credit score, some of the most important of which are that the account is paid when due and that at least the minimum amount is paid.
It’s a good idea to start with a small account, like insurance or a cell phone, and make sure it always gets paid on time. Once you’ve established that history, you can switch to a smaller credit agreement. Pay it on time and always try to pay more than the minimum.
Don’t apply for credit from too many creditors in a short period of time, as this also affects your credit score. You are entitled to one free credit report per year. Check it annually for anything that might not seem accurate.
Questions can be edited for brevity and clarity.
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