How to Improve Your Credit
Not so perfect credit is stressful and costly! Finding a job is hard but if your new employer does a credit search as many do; is your credit score going to keep you from getting the job? Your insurance company checks your credit score before quoting your insurance rate, the higher the score the lower your insurance rate.
Checking credit scores is becoming a way of life, good or bad. So improving your credit will improve your life. And, like all good things, it takes time and effort; however the rewards are great!
- Stop using your credit cards. If you really want to improve your credit you must stop using your credit cards until you have control.
- Get a copy of your Credit Report. You cannot fix your credit unless you know what it looks like
- Clean Up your Credit Report. If something is reported in error on your report, contact the lender and file a dispute with the credit bureau.
- Get current on delinquent accounts. Contact the lender and work things out. It is not easy to make that call, however the lender wants to work this out also and you taking the first step to resolve this situation show your commitment to see it through. Often a lender will settle for less than what is owed and work a payment arrangement with you. Keep an open mind and keep calm. The lender wants paid and you have an obligation to pay, making the call to them is a step in the right direction!
- Do not complete applications for credit. If you are truly trying to repair your credit, completing an application for more credit will not help you repair what credit you have already. Just stop!
- Keep Accounts with balances open. You might not want to close an account you are paying on, as this might show adversely on your credit report. Check with your lender and ask that the account be kept open as you make your payments to become current and pay the account up.
- Get Professional help. If you feel like your credit situation is more than you can handle, there is help out there. Be careful! Read what you sign. Understand what you are being asked to do. Know what the result will be for all your hard efforts. If you’re making payments to a credit counselor weekly or monthly how often are your payments being sent to your lenders; weekly and monthly? Make sure you find out what the counselor settled for and if the lender will mark your account paid in full or settled for less than owed, both are better then delinquent or in collections.
