Tips For Repairing Bad Credit

By Author: Brain Jenkins
Total Articles: 43
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A strong credit history is important for a variety of reasons. If you want to buy a home, a good credit history enables you to get a lower interest rate and even put less money down. Many apartment rentals check credit history as a routine part of the application process. Even many job applicants have their credit history checked as a matter of routine. If you have poor credit, it may seem like there is little that you can do, but nothing is further from the truth. There is nothing mysterious about the credit process, and there are some basic steps that you can take to improve your credit score easily.

Before you begin the process of repairing your credit, it is important to make sure that you and your family members are serious about change. It does no good to improve your credit score only to find yourself in debt again and again. The most important first step to improving your credit score is committing to changes in the way that you live your life. No more buying things that you cannot afford or using credit to maintain a lifestyle. Instead, use credit wisely, and to your advantage. Don't feel pressured to spend money ...
... you do not have on entertainment or shopping. Use the tips below to begin improving your credit today.

Check your credit history. If you know that you have poor credit, checking your credit history may seem redundant, you know what is there, right? But checking your credit history is just as important for those that have poor credit as it is for those with stellar credit. Mistakes can happen on anyone's report. You are entitled to one free copy of your credit report each year from each of the credit reporting agencies. It makes sense to review your credit report annually, and, if you notice any errors, contact the credit reporting agency immediately and sort out the problem.
Make payments on time. There is little that you can do to erase previous black marks on your credit, but you can improve it from this point on. Make payments on time, taking into account mail time so that payments arrive at the payment office before they are due. If you consistently have trouble remembering to make payments on time, it makes sense to take the time to sit down and arrange for your payments to be automatically deducted from your checking account each month. This ensures that you never face a late payment penalty again. Each month that you make your credit card and utility payments on time improves your credit history.
Use credit. If you do not have a credit card, it may make sense to apply for one. If you believe that your credit is too poor to qualify for a credit card, look into a secured card. A secured credit card allows you to deposit a certain amount of money into a savings account. This money is then used as security for the credit card. You can use the credit card anywhere that you would normally use credit, to buy fuel, go shopping or order online, and you make payments, just like a traditional credit card. The credit card company reports to the credit agencies, so you are able to develop a history of prompt payment. Of course, it is important to properly utilize these credit cards, and not overspend, your goal is to use it just enough to build your credit worthiness.
Do not use all of your credit. Whether you have traditional credit cards or a secured card, pay down the balance. Credit agencies get nervous when an individual uses near the credit limit of their card. Aim to pay any credit cards down so that at least 50% of the balance is available, although 65% is even better. While you want to use your credit to improve your credit score, overusing is can cause problems as well, even if you are able to pay the minimum payment each month.
Be patient. Credit repair takes time. However, credit is a revolving process. Each month that you make timely payments your credit history improves. Each month that you bring your outstanding balances lower, your credit history improves. Commit to the time that it takes to improve your history, and you will be rewarded down the road.

How Long Does it Take to See Results?

Once you dedicate yourself to improving your credit, you should begin to see results soon. Problems such as foreclosures and bankruptcies take years to fully disappear from your credit history, but slow payments and collections accounts can disappear much quicker. Even if you have a major red flag on your credit report, such as a foreclosure, follow the steps above to repair your credit. That way, when the foreclosure is finally removed from your credit report, you will have a strong history of credit worthiness already in place.

About Author:

Brain Jenkins is a freelance writer who writes about topics pertaining to the mortgage industry such as a Mortgage Company.