How to Fix Your Credit
Fixing your credit is not as daunting as you think it might be, there are many things that you can do that are not expensive and can have an immediate effect on your credit score.
The first thing you must do is to run your credit with Experian or Transunion, then you will know what is exactly on your credit report. Once you know what is on your report then you are able to review your full credit report and verify that all the times are yours. If you see that there are some error on your credit report then you need to dispute them and get them to remove from your report.
Removing errors will improve your credit score immediately. and from then on you need to monitor your credit through one of the credit report agencies.
Here are some useful tips to help you rebuild your credit and the sooner you do it the sooner you can enjoy the benefits of having good credit.
It is very important that you must avoid making any late payments. By making your payments on time this will start to establish a better credit pattern. You might want to set up payment reminders to make sure that all of your payments are made on time.
To create positive credit on your outstanding payments make sure that you start to pay all the outstanding bills that you might have. This again will show a positive payment pattern.
It is important to lower your expenses and only spend what is necessary, additional purchases that are not needed strongly advise to eliminate. The last thing that you want to do is to create more debt while you are trying to re-establish your credit rating. It might be best to use cash instead of credit while you are re-establishing your credit rating.
It is also important not to exhaust your credit lines so that minimizing your use of your credit cards will greatly help. Keeping your available credit limit at 30% is advised as this will also improve your credit rating as your debt to income will have improved.
You can also lower the credit lines that you have with your credit cards to a lower amount, this will also help the debtor income. This will also limit the temptation to purchase things that are outside of your budget.
An important tip is that it is not a good idea to settle any debts that you have with a collection agency, this is because when you settle a debt with a collection agency this settlement agreement will stay on your credit report for seven years, so it is best to pay it in full.
It is important not to open any new credit cards because this will have a negative effect on your credit score. By resisting the temptation of all the offers that the credit cards are mailing to you is important because they will only get you into further debt.
Please view the infographic below as I think that is very helpful in your quest to fix your credit.