Suffering from a bad credit history doesn’t have to be a hopeless situation. Everyone can take positive steps to improve their credit one step at a time until they regain a good credit standing.
In this article, we’ve put together practical tips to help save your credit:
Order a copy of your credit report.
Check for errors or incorrect charges in any of your accounts. If you’ve found any, contact the bureau that issued your report immediately. Clarify the errors in your report. It may take at least 30 days for the investigation to complete before you can get the corrections in your report. After 30 days, the credit bureau must send you an updated copy of your credit report.
Get a bad credit credit card.
Bad credit credit cards or secured credit cards can be used to improve bad credit. As you use your card on purchases and submit monthly payments on time, you can raise your credit score one step at a time. Unlike regular cards, secured cards require a security deposit that can range from $500 to $1,000 depending on the issuer. The amount of your deposit may determine your credit limit.
Stop using your credit cards.
If you really want to get out of bad credit, you should put a stop on using your credit cards. Concentrate on paying off your existing balances until you’ve completed all your payments. Don’t forget that the only way you can improve bad credit is by paying your creditors and being consistent with your payments.
Never use your credit card for cash advances.
Fight the temptation to use your card for cash advances. Cash advances are charged with transaction fees and interest rates. Most cards charge a higher APR on cash advances than on purchases or balance transfers.
Don’t submit applications for new credit.
This may not be the perfect time to apply for new credit such as loans or credit cards. It’s best to work on improving your credit history first. Avoid submitting applications to different companies just to see your chances of getting approved. Such a move can only add more damage to your credit.
