A poor credit score can bring about stress and other problems.
Fortunately, it does not need to be a permanent situation. Yes, anyone who is currently experiencing this dilemma can be free by taking the correct steps in repairing bad credit.
In this article, we present ten things that you can do free yourself from bad credit.
1. Go easy on your credit cards.
If you bad credit, you do not want to aggravate the situation by incurring more debts. Obviously, this isn’t the time to be using your credit cards for spending. On the contrary, this is the time when you should be finding ways to save money and cut back from your expenses.
2. Examine your personal credit report.
Order a copy of your credit report from each of three major credit bureaus so you can check it for errors or unauthorized charges.
3. Fix errors in your report.
Did you know that errors in your report can pull down your credit score? The good news is that you can request the bureau to remove errors and update your report. Enclose a photocopy of your report with the errors clearly marked along with photocopies (NOT ORIGINALS) of documents that support your claim.
4. Keep up with your bills.
Don’t be late in submitting your payment. Watch out your due dates on all of your accounts and prepare your payment ahead of time.
5. Don’t send multiple applications.
If you are thinking about applying for a loan, don’t try your luck by sending multiple applications at once. Such a move can do more damage to your credit and may actually send out a negative impression to a potential lender.
6. Choose which credit cards you close wisely
Did you know that closing old accounts can adversely effect your credit score? The older the account the more it helps your credit report. If you decide to close the account, ask your creditor to indicate in your credit report that you volunteered to close the account and not your credit card company.
7. Speak with your creditors.
Creditors can understand if you are presently experiencing financial crisis. Instead of ignoring your creditors or trying to hide from them, talk to them about your situation and ask if your repayment terms can be modified so that you can have an easier time keeping up with your repayments.
8. Pay off your debts.
You can’t regain good credit if you will not pay off your debts. If you can’t pay all your debts at once, negotiate with your creditors or try to come up with a settlement deal. Spend your money wisely and make debt repayment on top of your priorities.
9. Get help.
If the problem has to do with uncontrolled spending or a bad habit such as gambling addiction, then don’t hesitate to seek professional counseling. Check out the National Foundation for Credit Counseling to find a trusted credit counseling agency.
10. Don’t lose hope.
It may take a while to completely repair bad credit, depending on the status of your personal credit. However, as long as you’re moving towards the right direction, you should become even more determined as you improve your credit one step at a time.