Having bad credit is like a curse. It bars you from being eligible for a lot of things, among them are loans. People with bad credit scores continue to suffer but this does not mean that they should suffer eternally. There is still something which can be done to repair bad credit. Do not wait any longer. Take action now and make things better for you financially.
The easiest thing to fix on a credit report is wrong information. You can easily dispute this with your bank or creditor. Clerical errors are common and you should your credit report thoroughly once you get it. List all inaccurate information on your credit report dispute. Ask them to remove the information on your report. A person’s credit history has the most effect on a report. The things which can hurt your report are late payments, charge-offs and of course, accounts which goes to collections.
If you have any delinquent accounts, make them current. Strive to make overdue accounts current. You can borrow money from your friends and family to do so, or you can also sell things which you no longer use to earn money. You can also speak to debt collectors to take you off their collections account. They are not required by law to do this, but you can try speaking to them, they might just hear you out.
You should not forget that your total debt compared to the total credit makes up 30% of your credit score. 30% is a substantial amount which you should not ignore. Maxed out credit cards is a no-no for people with bad credit. You should pay off your credit card debt. You need to keep a credit balance which is 40% below the limit. Remember that maxed out credit cards will not only cost you valuable credit scores and over-the-limit fees. Do not forget to continue paying your credit card balance on time.
Opening a new account is also something you can do to establish a good credit score. However, you have to keep in mind that your undesirable credit score can keep you from getting a major credit card application approved, so you might want to start with making a single application. Do not apply for multiple credit cards at the same time or it will pull your score down. You have to keep inquiries at a minimum. A secured credit card is a good idea. When you do get your application approved, make it a point to stay current.