For most of us, a bad credit rating is about two missed pay periods away. Late payments, non-payments or disputes with lenders can all contribute to a lower credit score. But there are a few ways you can help get your credit rating moving back in a positive direction. It’s important to know that it won’t be easy. It will take time but taking small steps towards fixing a bad credit rating can be productive.
First, you need to know where you stand so obtain a copy of your credit report. You can see your score for free by visiting: www.annualcreditreport.com. Check it over carefully and see if there are any errors on it. Creditors can and sometimes do make mistakes. You also need to make sure your identity hasn’t been compromised.
If you find any errors, make sure to file a dispute with the credit bureau immediately. Just having the mistake corrected can have a positive impact on your credit score. Again, you can obtain a copy of your credit report for free annually, so make sure to check it.
It seems glaringly obvious, but making timely payments is imperative. Companies like credit cards, utilities, television or internet providers all have people who pay late or not at all. They’ve heard enough sad stories to write a book so paying them on time will be beneficial when you require their help.
If you aren’t regularly late with payments, many creditors should be willing to work with you to get you back on track. Remember, all payments that are late or missed are all painted with the same brush unless the creditor wants to work with you. Your payment history for bills and credit cards is the biggest factor in moving the line on your credit score.
If it’s at all possible, try to pay off credit card debt each month. The interest will continue to accrue and it will keep you paying them for much longer than you anticipated.
Paying the minimum is fine if that’s all you can handle, but it is best to get those high-interest payments off your plate completely. If you can add anything over and above the minimum payment each month, it will go a long way to putting you in a better position for fixing a bad credit rating. Plus, late or missed payments to the credit card company can tarnish your credit score for many years.
If you have debt in several places and are unable to make the minimum payments, consider a debt consolidation loan. This is a loan that is often negotiable for obtaining lower interest rates which will allow you to pay off all the other higher-interest debt.
It could save you a lot of money and stress to only focus on one debt instead of several. This is ideal for clearing up missed car payments, multiple credit cards or any short-term loans you may have taken out. It’s important to understand that once you consolidate, you don’t go add new debt until the current consolidation loan is paid.
No one likes having debt or bad credit. It’s so easy to just put it on credit. The problem lies in the fact that credit always comes due. If you aren’t careful, it comes due with late fees and high interest. Financial restraint definitely requires self-discipline in order to knuckle down and make the payments.
If you’re able to take some of the steps discussed here, it will go a long way to helping you at least maintain, if not improve your credit rating. At times it can seem overwhelming, but there are solutions. The first and best place to start fixing your bad credit is to stop over-spending and begin paying down.
Are you looking for a fast easy loan but worried about bad credit? It’s okay! We’re here to help. For online payday loans, apply online. Or come into one of our 26 locations today.