Getting Back in Good Credit Standing
Getting your good credit back seems like a lot of work, doesn’t it? Well, that’s because it is. But if you ever want the advantages that come with good credit—buying a house, a car, a nice vacation, and even some higher paying jobs—you will need to get your repair bad credit.
The First Step
The first thing you need to do is get your credit report. This will show what you owe, how old the debt is, etc. You will also get your credit score, a three-digit number that indicates the level of risk you are. Be sure you get your report from all of the big three credit bureaus for accuracy. These bureaus are TransUnion, Experian, and Equifax. They will have slightly different reports on your credit.
The Second Step
The next step to repairing bad credit is to contest mistakes. If there are errors in your reports, notify the bureaus in writing immediately. The sooner you get this done, the sooner your score goes up, and it can take a few months to complete this process.
The Third Step
Also, if you have credit cards or other accounts that are still open, pay off some balances, especially if they are high. Skimp on other things or take another part-time job, but get the balances down and leave the accounts open—this will improve your the ratio of your credit limit and balance. If you must close an account, make it the newest one—the length of time of your credit history is also a factor in your credit report.
The Fourth Step
Make all payments on time from now on—this will go a long way to improving how creditors see you. You can’t change the past, but you can change the present and future. Don’t charge any more items for awhile if you have open credit card accounts. And don’t take out any loans—you will only pay a higher interest rate because of your bad credit.
Summary & Conclusion
Remember that although you can’t alter what you did previously, you can move forward on the right foot. That will be in your favor when applying for credit later. Bad credit doesn’t have to ruin the rest of your life, so start now on your bad credit repair project.
In fact, by following the suggestions outlined in this brief article, you really call be well on your way towards re-establishing a good, solid credit history and well on your wal to increasing your credit score. The benefits, in the long run, will be tremendous.