How to raise credit score after debt settlement?

If you have been wondering how to raise your credit score after a debt settlement, this article is for you. Worrying about your credit score plummeting after applying for a debt settlement is normal, but it is not the end of everything. There will be financial consequences, but with the right strategy and a little bit of work, you will not be in the red in no time.

Tips on how to raise your credit score after debt settlement

Now that you have availed of debt settlement, time to do something about raising your credit score. Here are some tips to start you off:

• Don’t close your credit accounts. Wait, what?! You may be wondering why keeping your old credit accounts open is recommended. Shouldn’t you be closing accounts instead of having multiple accounts open? No. Keeping your credit accounts open will help you establish credit and improve your credit profile. It will also show that you have a low credit utilization ratio which, in turn, will improve your credit score.
• Reduce credit card consumption and balance. It doesn’t mean that you have multiple credit cards that you can spend needlessly. Remember that the goal is to improve your credit score after debt settlement, so the reduction of your credit card balance is one of the keys to doing this. Don’t worry, it will not be forever. You will have more room to breathe as soon as you get back up on a good credit score rating.
• Pay bills on time and dispute credit report errors. One of the best ways to raise credit scores is to be updated on your bills’ repayment. Repayment may not be reflected immediately after settling in total, but when you see an error, file for a dispute as soon as possible and have your report updated. Once you know that you are cleared from a particular debt, make sure that you check your credit report as well.

It may be hard work, but it is not impossible. So, don’t lose hope. You can raise your credit score after debt settlement and take steps toward financial freedom. If you want to be financially stable, start doing something now. A little effort will go a long way.