When your credit has gone bad it is hard to understand exactly how it got there, what life events made it near impossible for you to keep it where it should be. This is impertinent however. Now is the time to stare it directly in the face, and vehemently seek to improve it. Read on to see how you can improve your credit score.
To repair your credit as quickly as possible, always follow-up after paying off a debt. That means not only contacting the lender to ensure that they update your credit status but also checking your credit reports to make sure that the new status of that account is shown. Credit reports are updated quarterly, so getting a paid account off your report should only take a maximum of three months.
When you are in the need to repair your credit, you will want to stop using your credit cards for anything. The reason is that the more you charge, the more you owe, and the worse you are making your credit. To repair the damage, you need to pay off the amount you owe first before adding more to it.
Obtain your credit reports, before you can fix the problem you need to know what the problem is. Your credit report cantinas all the credit mishaps you have made. Obtain a credit report from all three bureaus one might show something the others don’t. Read though your reports and make a plan to start fixing the problems.
If you are going to pay off and close some of your credit accounts, then follow the rule of “last one in, first one out.” That means that you should close your newest accounts and keep your older accounts, as a longer credit history looks better on your credit report.
To rebuild bad credit quickly after a bankruptcy, pay all your bills on time every time and consider acquiring a secured credit card. Secured credit cards are awarded on the basis of collateral over credit rating. The higher risk lending policies of these cards also translates to higher interest rates, though, so only use your card for emergencies, keep the balance low, and always pay on time and over the minimum.
The main reason people need credit repair is to be able to have better credit scores in the future. If you do not have them, you will find that you cannot get loans, a new home, or new car. This can make life very hard. A better score will make you be able to get the help you need later.
To show creditors that you are serious about changing your spending habits, consider opening a savings account. Most banks offer this service for free, and you can have small amounts withdrawn from your checking account to help you to stay committed to saving. If you maintain a healthy balance in your savings account you can even earn some interest.
A great first step to credit repair is to begin paying off all of your credit cards. Start with the lowest one first and pay it off first. This will mean paying the minimum balance only on all the others and paying that one at a higher amount or in full.
It may have been unforeseen, and something out of a bad dream, but your credit is where it’s at simply because of some unfortunate event. These happen to everyone. Now you are armed with the tips and tools to go about fixing it, so that you may continue on with your life in a normal fashion with great credit.
