Having a bad credit rating can seriously delay your goals in life. It can rob you of your financial options and prevent you from taking advantage of great opportunities. However, a few simple steps can be taken back in the direction of a good score.
If your credit is such that you cannot get a new card to help repair it, apply for a secured one. Anyone can get one, but you must load money onto the card as a type of “collateral”. If you show a good history of payments with this card, it will help improve your credit standing.
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. You should keep your balances under fifty percent; anything over this and you can lower your credit rating, so spread out the money you own and pay down your credit cards.
A good credit report means you are more likely to get financing for a home. Timely mortgage payments augment your credit score. As a homeowner, you will have a major asset that can have positive effects on your credit profile. If you have to take out a loan, this will help you.
You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. Many companies are legitimate and hold your best interests as a priority, but some are outright scams. Others are just plain fraudulent. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.
If you felt bad about your credit score, use these strategies to change that. This advice can make all the difference between having a bad or good credit score.
