Just because your credit score is low right now, doesn’t mean it has to stay that way. There are practical steps you can take today to begin rebuilding your credit slowly and make some of your financial dreams- like owning a house or buying a car – come true.
Start using these tips right away to improve your score and open yourself to an abundance of financial possibilities:
Review your Credit Report
The first thing you should do is get a free copy of your credit report and review it carefully for any errors, omissions, or unusual activity. If you see anything that looks amiss, such as outdated or incorrect information, contact the credit reporting company immediately to have it resolved. You could see an improvement in your credit score within a month of reporting it.
Having a credit card is a good strategy for building up a positive payment history, but only if you use it wisely:
- Make regular payments on your credit card to avoid accumulating interest and to keep your debt-to-credit ratio
- Avoid maxing out your credit card. Ideally, you want to carry a low balance – no more than 30% of your credit limit. If you have a high balance on one credit card and low balances on others, transfer some of your balance from your high card to your low cards to even it out, keeping each under 30% if possible. You may even want to consider opening new accounts for this purpose, however, be cognizant of how many accounts you can realistically manage and pay off each month.
- Don’t try to open too many new accounts at once, as this can negatively impact your credit score.
- Try to make extra payments every month (even if you can only manage a small amount) to avoid looking like you are accumulating debt. It is better to make more frequent payments on your cards and reduce your debt-to-credit ratio than to have the money just sitting in your bank account. You may need to get used to having less spending money to make this happen.
- You may want to consider using a new or existing home equity line to pay down credit card debt, but this only makes sense if the interest rate is lower than the rate on your credit card. If you choose to go this route, you will still need to focus on paying down the debt, rather than carrying it.
- See if your credit card company will increase your credit limit. This may sound counterintuitive when you are trying to pay your card down, but doing so will improve your debt-to-credit ratio. If your credit card provider approves you for a higher limit, do not max out your card, as this defeats the purpose.
- If you pay off a credit card, don’t be too hasty to close it. The longer you have a card, the better it reflects on your credit history, even if you aren’t using it. Just be sure to monitor it regularly so you can pick up on any odd charges that may indicate identity theft.
Make your payments on time, every time. Your cell phone bill, your mortgage, your car payment, your credit card – they all count. There is nothing more detrimental to your credit score than being late with a payment or skipping it all together. One or two innocently overlooked payments over a long course of time are probably not going to affect your score. However, poor repayment habits, if they get listed on your rating, can make your credit score nosedive quickly. If you are having trouble making ends meet and know you can’t make a payment deadline, contact your creditors immediately to see if they can work with you. They may be willing to make temporary arrangements such as pushing back your payment date or setting up a more manageable payment plan.
Be Careful Who You Share Credit With
When you are trying to rebuild credit, it can be beneficial to become a joint credit holder with someone you trust who has a good credit history and credit score. Doing so can boost your credit score, as long as your joint credit holder continues to show good credit habits.
Likewise, if you divorce or end a relationship with someone who you share joint credit or debt with, it is advisable to pay down, close or transfer debt that you have accumulated as a couple into individual accounts so you can begin to rebuild credit on your own.
Talk to Your Creditors
Sticking your head in the sand and ignoring your financial problems solves nothing and can lead to calls from collection agencies, which damages your credit score. Instead, be proactive and call your creditors if you are facing circumstances which prevent you from meeting your financial obligations. Creditors are often willing to make reasonable repayment arrangements with you which can prevent defaulting on your loans or cards.
Talk to the Professionals
You wouldn’t try to cure a medical problem without consulting a health professional like a doctor, so why would you try to cure your financial woes on your own? The best piece of advice you can take is to consult financial experts who can thoroughly examine your personal financial situation and provide proven, individualized strategies to improve your financial health. It is money well-invested.
Rebuilding your credit is a process which takes time and won’t necessarily happen overnight. The best way to improve your credit is to be patient and develop good credit habits. Your dreams are within your reach if you own up to your financial mistakes, make wise choices and spend responsibly.
Your path to financial freedom can start today with Great American Credit Repair Company. Contact us at 1-800-603-1943 to receive expert advice on how you can begin rebuilding your credit score right away.
About Great American Credit Repair Company
Great American Credit Repair Company…….because you deserve a fresh start! Call us today at 1-800-603-1943 for your FREE consultation. Our financial experts will work diligently on your behalf to raise your credit score and repair bad credit. We are attorney-approved and offer the industry’s only Money Back Triple Results Warranty to protect your investment.
How does Great American Credit Repair work to restore your credit? Approximately 79% of all credit reports contain errors and aren’t verifiable. At Great American Credit Repair Company, we have proficient understanding of the rules Credit Bureaus are bound to and how to resolve common but substantial threats to your credit score. We know most people don’t earn the credit score they deserve and will investigate every negative aspect of your credit report every single month to make sure you get the highest credit score possible.
REPAIR YOUR CREDIT TODAY by calling us Toll Free: 1 (800) 603-1943 or visiting us at https://greatamericancreditrepair.com.