When one of your accounts gets sent to collections, your credit score will take a hit. Paying off the collections is the first thing credit repair experts will suggest doing to improve your credit score. Since your payment history makes up the largest percentage of your credit score, it’s ideal to focus on it first, if possible. Here are a few other ways you can improve your credit after a collection appears on your report.
Work With Credit Rebuilders To Remove Collections From Your Credit Report
The best credit rebuilders can help you remove collections accounts from your credit report. While there’s no guaranteed method for doing so, credit repair experts know what works and what doesn’t. If the collection is simply an error and does not have the correct details, then they can help you dispute it.
Another strategy credit rebuilders might suggest is to send a goodwill letter if the debt was an isolated incident. You will need to pay the collection and then your letter can state that you’ve done so, and request that the lender remove the item from your credit report. This strategy won’t always work, but it’s well worth the effort in the right circumstances.
Pay All Bills On Time Going Forward
Going forward, it’s critical to pay all of your bills on time when they are due to boost your credit. Since payment history is a major factor in your overall credit score, stringing together timely payments will lessen the severity of the collection. If you have any past-due accounts, be sure to get them current as quickly as possible, and then don’t miss another payment.
Lower Your Credit Utilization Ratio
If you can maintain a credit utilization ratio of under 30%, then you could be on your way to improving your credit. To accomplish this, credit repair experts recommend paying off your credit card debt and keeping your credit card balances as low as possible. And don’t close any credit cards unless it’s necessary, since you will reduce the amount of your available credit by doing so.
Core Credit Solutions can help you fix your credit in Los Angeles the right way. No one ever wants to have a collection account on their credit report, but we can help you develop strategies to minimize the impact. With more than 25 years of experience dedicated to helping Los Angeles residents improve their credit, we have earned a positive reputation. Don’t hesitate to contact us at any time if you have a collection on your report and need guidance.