Having terrible credit can affect your daily life in a number of ways. It’s harder to own a home and interest rates are higher on cars, insurance and a number of other purchases. If you’ve had a hard time keeping your credit rating up, here are a few tips to get your credit back in good shape.
Don’t apply for credit cards or other accounts over and over again until you get approved for one. Each time your credit report is pulled, it temporarily lowers your score just a bit. This lowering will go away in a short period of time, like a month or so, but multiple pulls of your report in a short period of time is a red flag to creditors and to your score.
If you file bankruptcy, ignore the calls you receive afterwards from credit score improvement firms. A bankruptcy is a public record and many scams are run by companies preying on your weakness after having to file a bankruptcy. Avoid this issue by only working with companies that you make the initial contact with.
For a quick boost to your FICO score, start paying down your credit cards. Your FICO score is heavily influenced by how much available credit you have. Try to get your cards down to where you are only utilizing 50% of the available limit at most and keep them there.
When working to repair your credit it is important to make sure everything is reported accurately. Remember that you are entitled to one free credit report per year from all three reporting agencies or for a small fee have it provided more than once a year.
An important tip to consider when working to repair your credit is to be sure that you spread your debt around if you have multiple credit cards. This is important because it is better to have to cards at a medium or medium low balance than to have one card at a low balance and one at a high balance. Your score will suffer otherwise.
More income is the obvious choice when one is working to repair their credit. Therefore, it is important to consider getting a second job. This is important because it is very likely that you actually do have extra time that you could allocate toward earning income. It is equally important to overcome pride, and realize that your current job may just not be enough for you to dig yourself out of a hole.
Fighting with your creditors may be a challenge and quite frustrating. Keep your cool. It will not pay to get angry and scream at the representative that you are communicating with. It will likely make them less likely to bend on any fees that they could potentially drop for you.
Bad credit can make your life harder, but using these credit restoration tips can help you to change it. Take each tip and implement it so that your credit rating starts to improve. Bad credit can be a hardship, but it’s not a permanent state if you start to turn things around today.