Bad Credit? This is How You Repair It

Although it’s possible to survive with a bad credit score, it’s not easy.  There are all sorts of ways that a negative score can impact your life. Whether you’re trying to rent an apartment, or even get a cell phone contract, your score will determine the price you pay.

In order to feel financial freedom and confidence, it’s important to get your credit in check.  More opportunities will open up as a result, and you’ll have less to worry about in general.

If you have dreams of one day buying a house or starting your own independent business, then it’s time to get started.  Here’s what you can do to turn your credit around right away.

 

Get A Copy Of Your Credit Report

The first thing you need is a full picture of what’s going on with your score. Credit reports are free, and you can obtain them easily by going online to a credit site like Credit Karma.

With the information on your report, you’ll be able to identify what needs to be prioritized in order to get your score up.  On the report, you’ll find a detailed list of everything that’s causing the problems. You’ll be able to identify any outstanding payments or other factors which have caused you to have bad credit.

 

Check For Errors

Sometimes there may be errors on your report which are negatively impacting your score.  Be sure to take your time and read carefully through your history. By familiarizing yourself with the big picture, you’ll ensure that there isn’t anything lurking which shouldn’t be there.

If you do identify an error, then you need to dispute it immediately.  You’ll receive instructions with your credit report on how to make a dispute.

 

Pay Anything Past Due

While there are many factors which attribute to your overall score, outstanding payments are on the top of the list.  Be sure that you pay off anything with an outstanding debt so that your status changes from “past due” to “paid.”

 

Lower Your Balances

Even if you pay every payment on time, having a balance close to your max allowance will still bring your score down.

The higher your balances are the lower your score.  Therefore, make a commitment to pay off your balances aggressively.  The sooner, the better!

 

Create a Plan

Develop a plan for how you intend to get out from under the weight of your debt.  For some people, this means starting by paying off the cards with the highest amount of interest first.  For others, it works best to pay off cards with the smallest balance first and work your way up.

In some cases, your debt may be so overwhelming that filing for bankruptcy is inevitable.  Whatever your particular set of circumstances is, create a plan for how you intend to tackle it.  It will help you stick to your goals and achieve them faster.

What are you doing to repair your credit?