How To Repair Your Credit Score (2016 Update)

Repair credit score
Repair credit score

How to repair credit and get better loan rates

A bad credit report seriously limits financial options. With smarter future decisions, however, it can be fixed and financial options improved.

To start the repair process, order a copy of your report from each of the three major credit report agencies: Credit Bureau, DP Credit Bureau, and Moneylenders Credit Bureau. Carefully study the report and deduce the reasons for your poor credit score.

Broadly speaking, there are three reasons for a bad credit report

  • Inaccurate entries in the report
  • Identity theft
  • Poor financial decisions in the past

The road to recovery and time needed for it is different for each listed cause.

Fixing errors in the report

Do you know that no less than 70% of credit reports have inaccuracies?

Inaccurate entries, such as listing of a debt already paid, can pull your score down. Make a note of all inaccurate entries and immediately report them to the agencies. You can either do this by phone or dropping them a message online.

Credit agencies are required to conduct an investigation and report their findings to you. Also directly contact the lending institution which must fix any errors present and notify the reporting agencies.

Dealing with Identity Theft

You are likely to have become a victim of identity theft if your report has entries that you don’t recognize. To stop the theft and minimize the damage, perform the following steps in the listed order:

1.      Raise a Fraud Alert

A fraud alert acts as a warning signal to lenders and creditors, directing them to issue new credit only after verifying your identity. Click the false items in your report online to initiate the dispute process. However, you can dispute some items only in writing and by providing supporting documentation.

2.      Contact Affected Institution

Contact the affected institutions immediately. For instance, if you’ve lost your credit, contact the credit card provider.

3.      File a police report

You must report the theft to the police to complete the identity theft report.

The above list is not exhaustive. Recovering from identity theft can be a long, complex process.

Recovering from Poor Financial Decisions

You can’t undo unsound financial decisions of the past. Wise decisions now and in the future, however, can fast track recovery. Start the recovery process with these three positive actions:

1.      Make past due accounts current

Accounts overdue by more than 60 days seriously bring down your score. Make payments on these accounts to bring them current.

2.      Avoid Charge offs

The lender will “charge off” your account if you don’t make payments on the loans for a long time. This account, however, will show on your report for 7 years from the date of the first missed payment, and for that much time this charged off account will gnaw at your score.

3.      Reduce your credit balance

The size of your debt in respect to your credit line affects your credit score inversely. For instance, an outstanding balance of $1300 on a credit line of $1500 will hurt a credit report more than an outstanding balance of $500.


Do you currently have a bad credit score and unable to obtain cash from banks? Do not worry! As a licensed moneylender in Singapore, we will be able to provide you with the cash you require. Simply drop us a message or fill in an application form! We will get our manager to get in touch with you asap regarding your loan application. Take a look at the types of loans we are providing! If you do not find anything suitable, as the best moneylender we will customize a loan just for you.

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