How To Repair Bad Credit

How can I improve my credit score?

Have patience: Building a solid credit history takes time. Many years in fact. A Tall strong tree cannot grow in weeks, and neither can a good strong credit rating.

A bad credit report can hinder one's life for a very long time. Don't let it happen to you

Your credit score is calculated using the credit data available on the day the score is requested by a lender. Thus, your score can vary from month to month or even day to day.

There are things you can do to develop a solid credit history and improve your credit score:

• Obtain a copy of your credit report. Make sure the report is current as reporting and items contained therein change frequently. Review it thoroughly. Carefully check dates, amounts owed, payment history and any comments regarding particular accounts that may be included. If you find any inaccuracies or have any questions regarding any of the information contact the reporting agency immediately. Clearly present your case and substantiate any arguments you have with any proof or evidence available to you. A telephone call is sufficient in most cases Put things in writing. Be direct, polite and professional. And, always include the date on any correspondence you may have with the company. Keep in mind that in most cases credit reporting agencies are willing to work with you. They are not in business to make you look bad but rather to provide accurate and concise information about you to potential lenders.
  
  

• If possible, consolidate. By consolidating your monthly expenses into fewer or even one payment you can reduce the number of high interest payments you are making. This will thus reduce the amount paid out of your own pocket toward interest and start paying down your principle amount owed. There are numerous lenders and not-for-profit organizations that offer debt consolidation. But, be sure to do your research. Find out what their fees are up front. Thoroughly examine, study and compare the company as well as the companies reputation and affiliations along with whatever plans and programs they offer.
  
  

• Can you afford to pay cash rather than charge? If there is an item you have been wanting to purchase always try to use the cash option. You'll be saving money in the long run by not making payments toward interest
  
  

• Pay your bills consistently and on time – recent late payments carry more weight than past late payments. Always pay EVERY bill on time, even if it means sending in less (but at least the minimum amount). If you can't pay your bill on time, call the company and let them know. If you find that you're having trouble paying your bills, it is important to set up a plan for repayment. Contact your creditors to establish a plan for you to catch up on your late payments. Set up a monthly budget, so you know where your money is going, and where you can save money to apply to your bills. By paying your bills on time, you are establishing a good credit file. Once you have established your credit locally, you can then apply to larger, national credit-granting companies, such as banks, credit card companies, etc. 
  
  

• Pay off any old, collection account or delinquent debt. First try to contact the company and pay the bill. If you find the company and the bill, pay them off and ask the company to contact the bureaus and give you a letter Stating they have done so. You can use this letter as leverage if a bureau is having a tough time showing the record as paid
  
  

• Check your credit report and remove any errors – If there is inaccurate information on your credit report, it could lower your score.
  
  

• Keep your spending limit down. If a credit card company offers to increase your spending limit decline the increase. For many, just having the availability of a higher spending limit is too much temptation. You could end up in trouble.
  
  

• Keep your debt reasonable – as a general rule, your account balances should be below 75% of your available credit.
  
  

• Maintain only a reasonable amount of unused credit – having ready access to thousands of dollars of debt can actually make you an unsatisfactory credit risk.
  
  

• Avoid too many inquiries – Inquiries are interpreted as a sign that you have been actively seeking credit and could overextend yourself or may be in financial difficulty.
  
  

•  Only open and keep accounts that you need... don't race to put 20 credit cards in your pocket.
  
  

•  Don't apply for every credit card that comes in the mail or via email. The more "INQUIRIES" on your report the lower your score.
  
  

• One way to improve your credit rating is by consolidating your credit debts. If you transfer the existing balances from several credit cards to just one card, and cancel the old cards, you may be able to save on the interest you pay on your credit purchases. By eliminating multiple credit cards, it can help your credit file from looking over-extended.

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