You can fix your credit just as effectively as a credit counselor could. There are several things you can do to take small steps in repairing your credit and it’s not a big secret. Take time to explore your options and start a steady plan to repairing your credit.
Paying off your monthly bills count as 35 percent of your credit report. If it is too hard to completely pay off all of your monthly bills, consider obtaining a debt consolidation loan. This helps you by reducing your monthly payments to something more realistic for you to pay at that time. You can best repair your credit by getting on top of your monthly bills.
Use Your Piggy Bank
Putting aside every dollar and penny can add up over time and will eventually build up a cash reserve that you can use in desperate measures. Having money put aside to assist with unexpected higher bills or other emergencies will only help. You may not be able to save a ton of money right away, but you should start now.
Lower Your Credit Limit
Lenders view your available credit on your cards the same as actual debt since you can use it whenever you want. Call your credit card company and have them lower your credit limit (if it is unused). This will help you reduce potential “debt” in the future.
Reduce Total Debt
Creditors will compare your total amount of debt to your income, and if the ratio is too high they will view you as a credit risk. If you make a plan long-term plan to pay off your current debt it can help you repair your credit. You just have to make sure you stick to your plan and not make any excuses to skip a payment.
Get Your Credit Report
You can order a copy of your report from Experian, Equifax and TransUnion for free once a year. By looking over your report you can be familiar with what is put on there and you can verify that all of the information reported is correct. Any false information can hurt your credit and should be one of the first steps to repairing it.
Call Your Creditor
If you have a hard time making full payments on time, contact your creditor and make an arrangement with them that will help you make some type of consistent payment. Lenders will most likely accommodate your situation if you are willing to still pay. Some credit card companies offer programs to help customers so explore your different options with them.
Stick With What You Have
Closing accounts and applying for new credit will not help you repair your credit any faster. It will actually hurt you because lenders will view is as poor money management. Opening and closing accounts too many times will greatly affect your credit score. If you have to open or close an account, keep it to once or twice a year.