How To Fix Bad Credit
It’s difficult when you have poor credit. It can make buying items more complicated and, in certain instances, more costly. Insurance firms could charge you extra if they know you have a poor credit score, for example.
You won’t be given cheap interest rates if you apply for credit (assuming you have a credit score that qualifies you). If you want to rent a house, you may run into trouble if they notice your poor credit, and obtaining a mortgage is almost impossible. As a result, it stands to reason that you should address your poor credit as soon as possible. Here are some ideas for how to go about it.
Contents
Look At Your Credit Reports
If you request it, the credit agencies (Experian, Equifax, and TransUnion) will provide you with your credit report. They have no choice; it’s the law. In fact, they should provide you with a complimentary copy of your report at least once a year.
You can also join up with any of a number of online agencies that will provide you with all of your credit scores in one place. When you’ve signed up for or got your report, take a close look at it and try to figure out what it all means. Understanding your credit score is the first step in improving it.
Dispute Any Errors
If there is anything on the credit report that’s incorrect or with which you disagree, be sure to file a dispute with the credit bureau. Sometimes your name is associated with someone you don’t know (for example, someone who lived in your house before you).
Perhaps there is still a bad mark on your record from the debt you paid off many years ago. All of these things – and many more – may have an impact on your credit, therefore getting rid of them is critical. It’s better to do this in writing so you can keep track of what was said and when. It can take some time to resolve these disagreements, but it’s critical that they are dealt with.
Get A Credit Card
If you’re experiencing problems with your credit, getting another credit card will probably be the last thing you want to do, but there’s a reason you should think about it. The more credit you have that isn’t being used, the better it will appear on your credit report.
It would look bad if you have just one card and it’s maxed out, but if one is full and another is pretty much empty, that actually gives you a better score, even though you have two cards rather than just one. This is because you are using your credit wisely. If you need help looking for a card, take a look at Compare Credit for advice.
Don’t Close Accounts
When you’ve paid off something, such as a credit card, the temptation is to shut the account down entirely. It’s a gratifying sensation; you’ll know you’ve accomplished something, and it might even be something you’re looking forward to. However, it may not be the best thing you can do for your credit score since you will be reducing the amount of credit you have, and as previously said, the more credit you have that isn’t being used, the better.
Once you have paid off an account, you should cut up the card and safely dispose of it; you don’t want to start spending money on it after you’ve worked so hard to pay it off.
