Repairing your credit is a lot like repairing a broken relationship. It takes effort and most importantly; time. Use the tips listed below to get started on fixing your broken credit. If you stay on top of it going forward, you will have a positive report in due time.
Be sure that you pay all of your bills promptly if you are trying to fix a bad credit history. Don’t leave them until the last minute. Set up a schedule for when you pay your bills, and use some sort of reminder system to make sure that they all get paid on time.
Make sure to make your payments on time when you subscribe to a phone service or a similar utility. Most phone companies ask you to pay a security deposit when you sign a contract with them. By making your payments on time, you can improve your credit score and get the deposit that you paid back.
If you notice a mistake in your credit report, you can make the corrections yourself. You will need to contact the major credit-reporting agencies and ask for assistance. This is pretty straight forward and there is no fee to do this. There are also publications that offer credit history self-help, as well.
Avoid any credit repair consultant or service that offers to sell you your own credit report. Your credit report is available to you for free, by law. Any company or individual that denies or ignores this fact is out to make money off you and is not likely to do it in an ethical manner. Stay away!
If you want to repair your credit, do not cancel any of your existing accounts. Even if you close an account, your history with the card will stay in your credit report. This action will also make it appear as though you have a short credit history, which is the exact opposite of what you want.
Just because your credit needs repair, does not mean that no one will give you credit. Most creditors set their own standards for issuing loans and none of them may rate your credit history in the same manner. By contacting creditors informally and discussing their credit standards and your attempts to repair your credit, you may be granted credit with them.
Don’t use all of the credit available to you. Credit agencies use a debt to available credit ratio when calculating FICO scores. When debt is at a high percentage, the credit score is lowered. Keeping available credit on every account that you have will not only help your score, but will also give you some options should there be a costly emergency.
Be patient. It could take up to 10 years to clean up your credit completely, depending on how bad it is. Even if you are able to get out of debt quickly somehow, you won’t be able to erase any derogatory remarks in your credit report overnight. Your score will, however, steadily improve.
You have to keep yourself from letting bad credit get you down. It doesn’t have to stay that way forever, and as this article has shown, there are lots of practical and easy things, you can do to get your credit going in the right direction.