5 Tips for Successful Credit Repair

Deborah B By Deborah B, 4th May 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/esax26iw/
Posted in Wikinut>Money>Credit Cards

Having bad credit doesn't mean you have to suffer for the rest of your life. What it does mean is that you need to take action to make things better. Here are some tips to get you started on the right financial path.

Recognizing the Problem

People with bad credit find it virtually impossible to get someone to approve them for new lines of credit, and they even find themselves paying higher rates for car insurance. With bad credit, you can’t get a cell phone contract, you may have to pay higher interest rates on loans, and an employer may deny you employment.

In your college years, you might have made numerous mistakes, such as paying your credit card bills late or not at all. Despite your efforts as a mature adult, you may find yourself suffering from these mistakes a decade later. It’s obviously very easy to get bad credit, but it’s exceedingly difficult to repair it.

Always Pay Bills on Time

How you pay your bills definitely has an enormous influence on your credit score. If you pay your bills 30, 60, or 90 days later than the due date, your credit score will suffer a large drop. Not only will your credit score suffer, but you risk having your account closed as well.

Many people with bad credit think that it’s too late to improve their credit score by paying bills on time, so they don’t even try. Yet if you always pay your bills on time without fail, your credit score will increase within six months. If you have trouble remembering to pay your bills, you can automate your payments to ensure you never miss deadlines.

Stop Maxing Your Credit Cards

Don’t overspend on credit if you want to change your credit score for the better. By spending more than the credit card limit, you are asking for a drop in your credit score. In fact, by just maxing out your credit card and not even going over the limit, you are setting yourself up for bad credit.

Don't Repeat Your Mistakes

Your credit score will take a long time to repair, so don’t feel discouraged if you don’t see an increase overnight. It’s quite easy to give up and go back to paying your bills late, which will damage your credit further. Once you see an improvement in your score, increase your efforts instead of lessening them.

Periodically Review Credit Report

Make a habit of checking your credit report at least twice a year. Whenever you get your report, you should read each line carefully, checking for any inaccuracies. These mistakes can negatively affect your credit score. Report every mistake that you find to the credit bureau in order to have them corrected or removed.

Credit Counseling Organizations

If you’re still having trouble with your credit, you can go to credit counseling organizations for help. These organizations will help you set a budget and will teach you how to improve your credit. When looking for credit counseling organizations, be sure to look out for possible frauds. In most cities, you will be able to find at least one organization that’s certified.

Tags

Bad Credit, Credit, Credit Loans, Credit Repair

Meet the author

author avatar Deborah B
Deborah is a full-time professional writer with a passion for health, wellness, fitness, nutrition, finance, and more. She enjoys researching and sharing her knowledge with others.

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