If you have a poor credit report or you just want to know how to fix your credit, then you are in the right place. Even though the steps below will not work overnight, they will give you a sense of control over your credit rating.
Get your credit report from credit agencies
The reports will help you know exactly where you are today and how potential creditors see you in terms of risks. After getting the credit reports read through them and check if there are any errors. If you notice any errors, contact the firm and tell them about the incorrect error or errors.
The credit report will tell you if you have any bad debt or maxed credit cards that need to be fixed. You will be given the name and the contacts of any organization you owe.
This will enable you to reach out and resolve problems or set up a payment plan so that you start paying down your debt and fix your credit. Keep in mind that poor credit is not always the result of your faults and can at times be because of errors or omissions.
List all your debts in order
This is going to be your master list and the order that you pay off all your debts until the list is empty. It is a good idea to start with the smallest debt and work your way to the largest one. However, you should not include debts that you have always paid on time.
Pay monthly bills by due date
This will only help boost your credit score and make your credit history more attractive to lenders. Your credit will be adversely affected by a single late or missed repayment. It may be a good idea to set up some sort of payment reminder by using computer programs or setting up payment reminders on your phone.
Debt consolidation is one of the quickest and most effective methods you can use to reduce your debt load and raise your score. Basically, debt consolidation combines your debts into a single payment hence making it easier to keep track of and pay debts.
Learn your current rate charges on the various form of credit you have
Just because you were given an introductory rate does not mean that the rate is still in effect. You may be paying a very high rate due to the fact that you had just one late payment. Contact your credit card company and other creditors to find out the rate you are paying today.
Contact a non-profit credit counseling service
If you feel like your debt is unmanageable, it may be a good idea to contact a non-profit credit counseling service. The company will take charge of your debt and work with your creditors directly to establish lower interest rates and payment plans for the promise of regular monthly payments.
The tips above will help you fix your credit quickly and give you the reassurance that you are following sound financial principles to help you repair your credit.