- Begin with the copy of your credit report. Credit reports are available through credit agencies. Read through the report and be keen with the details. Mark the accounts that would need special attention. Know why your debts increased to its present level.
- If the report contains errors, contact your creditor and have the errors corrected immediately. More likely, these errors have impacted your score. For example, payments reported as late payments will negatively impact your score. You are not at fault so it is important that your score be adjusted to provide you the true picture of your credit standing.
- In the meantime, refrain from using your credit card. Pay your outstanding balances first. Continued use of your credit card while trying to improve your credit rating would directly relate to outstanding balance and credit limit. Significant reduction in credit card utilization should result to significant improvement in your credit score.
- Be determined to settle past due accounts. In fact, it is advisable to pay off old accounts first because it will positively impact your credit rating. If paying your old accounts and current ones seem burdensome to you, maybe you can consult with your credit company on how to restructure your payments.
- Make a definite decision to avoid unnecessary credits in the future. A decisive change in lifestyle and spending habits would certainly result in better credit ratings.
A bad credit score can be a huge source of stress. It can be costly, especially when you are seeking a loan. However, a bad credit score can be reversed. If you take these easy steps, you can improve your credit rating.
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AuthorI started this blog to offer up some no-nonsense advice to success in personal finance. I might also cover some other related topics over time too. Archives
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