Bad credit is something no one likes but a lot of people are living with. The situation may seem hopeless, but you can actually improve credit score if you try. Follow the top 10 tips given below:
- Get hold of your credit report. If you have no idea how bad your credit ratings really are, how can you go about fixing them? Ask all the top credit bureaus for your credit copy so that you can understand what areas need you to work on.
- If by a lucky chance, your credit report actually contains incorrect information, you can very well dispute it. You can have the negative information removed form your credit report if you have proof. This will help you to increase your credit score.
- Stop using your credit card! Yes, that is something you should keep in mind. If you continue to use your credit card for making random purchases, your credit score is going to go from bad to worse. But of course, don’t let it be dormant for too many months or it may be cancelled.
- Start paying off all past credit bills. Payment histories constitute an important part of one’s credit history and it certainly improves credit score.
- Do not apply for a new card as that is just going to further harm your credit score.
- Don’t close credit card accounts just because they have turned delinquent. It may have a negative impact on your credit score.
- Though it is obvious that you wouldn’t want to have any conversation with credit card companies, the truth is that you can benefit if you do. Most credit card companies understand and receive the problems of their clients well and often have programs to help them and ease the affect of the monthly payments. Make calls. It may actually turn out to be a boon to talk to your creditors and ask for help.
- Pay off at least one debt, as a start. If you don’t have the money, consider selling a belonging to pay it off.
- Seek professional help to know what you can do to improve credit score. Consumer counseling is available for people with bad credit.
- Be calm and patient. It may take you years to turn your bad credit to good again, but it will be well worth the wait.