It’s easy to feel overwhelmed when you are denied credit repeatedly and come to the realization that your credit needs help. A number of things can happen in order for you to obtain a bad credit score. Thankfully, once you’re aware of it, you can begin reversing the downward trend. Although it may take some time, you can improve your credit score in ways that you might not expect. First, you have to start by knowing what to do and what not to do to improve your credit score and how to keep it from affecting your life.
You can get a free credit report once a year from each of the three primary credit reporting companies: Equifax, Experian, and TransUnion. Go over your report in detail at least twice a year and look for errors. Companies make mistakes, and a misplaced decimal point or date can result in a lower credit rating than you deserve. Some people have discovered late payment notices on the report for accounts they don’t even own. It is important to catch these discrepancies and have them removed before they affect your credit score.
Some companies give you one late payment before reporting it to the credit reporting agencies. Most make a note on your report at the first instance of a late payment. If you can’t make a payment on time, contact the company and ask how you can work with them to delay the payment due date or make a partial payment and avoid the notice on the credit report.
Talk with your credit holders and ask for payment plans or other ways of paying them back without incurring bad marks on your credit report. Many companies will work with you when they know they will get their money. Don’t ignore their calls or notices because that will show up on your credit report, too.
Applying for a car loan may be the last thing you would consider when you have bad credit, however do not let the fear of being denied credit keep you without a car. Used cars are affordable and are an effective method to improve your credit score. Some dealerships, like us, specialize in helping people with poor credit acquire cars. By buying a used car with bad credit at a dealership like ours, which is a buy here pay here dealership, you can start to build your credit back up as long as you make payments on time. You will be on your way to better credit and on your way in a reliable mode of transportation again.
You can also apply for a gasoline or retail store credit card. Use it every month and pay it off entirely when the statement arrives. This will also give your credit a little boost. Just remember not to have more credit cards than you can pay for or you’ll find yourself in a deeper hole with your credit.
Be careful when applying for credit cards because each time a company looks at your credit report, a note is made on it. If a lender notices that you have applied for several credit cards within a short period of time, they may think that you’ve become desperate and consider you a high credit risk.
Repairing bad credit can seem like an impossible task. But like many big projects, small steps will get you there. Review and repair your credit report, manage your existing debt and do the small things to improve your credit we mentioned earlier. Step by step, your credit score will increase and you’ll have more credit opportunities, such as the purchase of a new home. You won’t regret the effort you put into improving your credit score.