Tips to Get Credit Back on Track
Getting your credit in a mess is one thing, but once it is already done what you will need to get it back on track. You will need to pay close attention to all details as it relates to your credit from here on out. There are some steps and tips that you can follow in order to correct your mistakes and get back into the safe zone.
- The first thing that you will need to do is set time out to monitor and check in on your current credit score. Take a few minutes to see how much progress you have made and set out guidelines as to the how much improvement you need to make to get yourself back on track.
- If you pay your bills on time, you will see that your credit score will improve. You should always try to make payments on your bills in a timely manner as well as paying installments on loans. If you are not able to make a payment or will be late with your payment, be sure to contact your creditor to ensure that you stay in good standing with them. Paying your bills on time is one of the most important aspects of your credit history. Set up automatic payments if necessary.
- Paying off your credit cards is the best way to improve your credit history. Do not just shift your credit balances from card to card. Pay down your debt and keep it down. Keep your credit account open to maintain a positive history.
- Try and be wise with your credit. If you have an open credit card, use it responsibly and don’t over use it. Remember, credit scoring rewards borrowers who can manage credit, not people without any credit experience.
- If the need arises and you find that you will need to take out a loan, take out small credit score loans. This will give you an opportunity to prove that you are able to manage credit and improve your score. Establishing a positive credit history is a key part of building a good credit score.
- Avoid credit cards that bring along with it high interest. That will only serve to put you in a deeper rut. Try to rebuild your credit with a protected card. You can obtain a card with a pre-authorized limit and you can make this your “just in case” money.
- Getting a credit counselor is a viable option as well. This credit counselor will be there to assist you in managing your money and your debts. You will receive assistance in making a budget as well as receiving the knowledge and resources to continue on your own. A credit counselor is trained in consumer credit, money and debt management and budgeting. After discussing your financial situation with you, they will work alongside you in developing a personalized plan on managing your money wisely.
- It cannot be emphasized enough how important it is that you communicate with your creditors. The moment you realize that you will not be able to make a payment, contact your creditor. Waiting until you are behind will increase your balance as well as your interest rates and fees. You will also need to be honest, giving the exact reason for your late payment. If your accounts are in order, you may be eligible for a special program.
- The final thing that you need to do is to give yourself a seven year period in which you will follow all these procedures in order to fully get your credit back on track. This will be sufficient time for all the information to be removed from your report.
Your credit score will affect so many aspects of your life. So, if you find yourself in the misfortune of having bad credit, don’t despair. Sit down and set out a plan, map out your journey to get your credit back on track!