[F]or people with bad credit, they are often looking for the easiest or best ways to improve their credit scores. While the quick-fix schemes promised by some companies don’t really work, there are some steps you can take on your own. You won’t see an improvement overnight, but your credit score will climb over time.
1. Get a Copy of Your Credit Report
You can’t fix anything if you don’t know what is on your credit report. You can go to annualcreditreport.com and request a free report from each of the credit reporting agencies. Review it and make note of any negative information.
2. Make Payments on Time
One issue that may be pulling your credit score down is late payments. While you may not be able to do anything about this information that is currently on there, you can show that you are now responsible by making payments on time in the future. This won’t improve your credit score right away, but it will help over time. When you have one year of on-time payments, you will notice in your score.
3. Pay Down Balances
Maxed-out credit cards also impact your credit score because it increases the amount of credit you’re utilizing. Start paying down your balances, and you’ll see an improvement in your credit score. This one step will have the most immediate impact. You just have to pay enough for it to be reflected in your score. Some goals to have would be pay off 50 percent, pay it down to 30 percent and then aim for 10 percent or less.
4. Pay Off Collections
Collections have a big impact on your credit rating. If you want your credit score to improve, you need to pay off the collections. While they won’t be removed from your report, they will show as paid. With changes in how credit scores are calculated, paid collections don’t have the same negative impact as unpaid ones.
You may not be able to tackle all of these steps at once, but if you work through them, you will see an improvement in your credit score.
[I]f you have a goal to improve your credit score for the new year, you need to set up steps to help you achieve this goal. For many, they read all kinds of information about how to get a good credit score, and it can be overwhelming. Sometimes, it can sound so easy but not […]
[T]here are three major credit reporting agencies: Experian, Equifax and TransUnion. All of them provide a credit report which lists your personal information and credit accounts. You can get one report for free each year or purchase extra reports through the agency sites. Many people just get one credit report, but you really should get […]
[A]s you get credit cards, you will notice they give you a credit limit. This is the maximum amount you can spend on the card without paying some of it off first. Credit card companies often increase your credit limit as you prove responsible handling the amount you have. You may wonder if more credit […]
[I]f you have bad credit, it can be difficult to qualify for a car loan. However, it’s not impossible. Before you go out and apply for money to purchase a vehicle, there are some things you should know. Check Your Credit Before you fill out any applications for car loans, you need to take a […]
[M]any people hear that they have bad credit, which means they haven’t always been responsible with their credit accounts. However, it is another situation entirely when a person is told they have no credit. You may wonder how that’s possible and what it really means for your future. No Credit Doesn’t Mean Never Any Credit […]
[T]ransUnion is one of the three credit bureaus which stores information about consumers and their credit history. It provides this information to creditors and to consumers. TransUnion was founded in 1968, and it now has more than 200 offices through the US and the world. How TransUnion is Different TransUnion is similar to the other […]
[E]quifax is one of the three major credit reporting agencies which provides information used on your credit report. It has a credit score which will impact your ability to get approved for new credit. All of these agencies aren’t the same, so here is some information you should know about Equifax. Equifax is headquartered out […]