Having a poor credit score can be quite a detriment to many aspects of your life. Poor credit makes it difficult to obtain a loan, a mortgage, and etc. If you are able to secure a loan with a low credit score, you will end up paying a much higher interest rate than you would if you had a good score. Thankfully, there are measures you can take to improve your score. Remember, though, improving your score isn’t going to happen overnight. It can take a good deal of time for score to improve, but with the right steps, you can make it happen.
Check your credit report. You can’t work on improving your credit if you don’t know your score or what issues there are on your report. Request a free report and check it for errors. Check to ensure that there are no late payments listed incorrectly on any of your accounts and also be sure to check that all of your amounts owed are accurate. If you do find errors, dispute them with the credit reporting agencies.
Reducing your debt is a great way to work on improving your score. It’s easier said than done, of course, but it can be done. To do this, stop using your credit cards for purchases. Make a list of all of your debt-related accounts, compare the interest rates, and start paying down the balance on the ones with the highest rates, and maintain minimum payments on the others.
You should also set up payment reminders for all of your accounts. Late payments do a lot of damage to your credit score, so being sure to make your payments on time will help greatly. If you are behind on payment, get current on those accounts and stay current.
If you have delinquent accounts or account in collection, just paying them off won’t remove them from your credit report. It can take up to seven years for these items to come off of your report.
Once you have started to make payments on time and get all of your accounts current, you should apply for an open new credit accounts, but only as you need them. If you have credit cards, use them wisely, and manage them responsibly. Opening new accounts and paying them off on time can be a huge help over the long term.
As we said, it can take time for you to repair a bad credit score, but it can be done if you take the proper steps and manage your finances and payments correctly.
If you are in need of credit restoration help, a bankruptcy attorney in Fort Worth can assist you with the credit restoration process.