Bad credit is not just expensive but also stressful. However, the situation may appear as hopeless, but bad credit will not last for long. Certain things can be done to currently improve your credit score. Let’s summarize the factors to consider:
Order a copy of your credit report
To start the process, you should know precisely how you will proceed. As the credit score depends on the info that is on report, one needs to review the credit report for errors and duplicates. Simply get a copy of the report from the credit bureau for identifying the accounts which require work. You can obtain a FREE copy at www.creditKarma.com or www.annualFreeCreditReport.com. Be sure to review the information being reported by all 3 agencies- Experian, Equifax, and Transunion
Address the errors and duplicates on the credit report
You can mark the errors and duplicates in the credit report to make it accurate. Online disputes are the fastest and easiest. The other option is to simply write a letter to the creditor or the credit bureau who reported the account. Do not consider the mistakes and duplicates as meaningless because these errors can diminish your credit score beyond your imagination.
If the balances are high and you can’t afford to pay down the balance, call the creditor and request a limit increase. Once it is issued, DO NOT use it. This will reduce your utilization rating and move your credit rating up.
Often if your account is in good standing, then the creditor will allow you to transfer balances for 0 percent or a low introductory rate to gain more of your business. Using balance transfers will allow you to pay the debt down at a faster rate because little to no interest is being charged, Therefore, this allows the payments to go towards the principle. Naturally, it will impact your credit score in a positive manner as your credit updates with most accounts every 30 days.
Lack of Discipline
If being thrifty is not your best friend, there are other options. Pay cash for buying rather than putting more charges on the credit card. Otherwise, you can ignore the buying totally by staying away from offline and in store shopping and eating out.
The 35% of the credit score is made up by your payment history. If you are behind on your payments, it will hurt the score. So, before the payments get charged off or sent to the collection company, it’s better to pay off all the due credit payments. You can discuss the missed payments with your credit issuer. They possibly can renew the account so the report showcases the account has been always paid timely.
Secured Credit Card
When your credit is damaged, it may be hard to establish new trade lines. A secured credit card is a win- win for you and the bank. They make money off the interest from the balance carried. You get a new trade line with no issues. Do not max out the card. We often recommend that you only charge 1 tank of gas and pay it off when the bill comes and continue to repeat until you see your scores surge provided that you don’t get any new bad credit.
Talk to your creditors
The creditors are the final people with whom you should talk. And if you call them they will surely help you. When you are having issues, contact them and discuss the situation. Some of them offer temporary hardship programs which lower the monthly payments until you can improve your credit.
Stay patient and persistent
In order to improve your credit score, you must keep your patience. Well, this is something you should have when you are improving your credit. The credit score doesn’t get damaged overnight, so never expect it to enhance in a short time span. You will have to pay your debts continuously on time every month and you will surely see the scores to improve over time.
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