There Are Always Ways to Improve Credit Rating

There Are Always Ways to Improve Credit Rating

Not everyone realizes there are ways to increase credit rating and get back on track financially.  Many people believe they are destined to have bad credit for the rest of their lives.  This is far from true if they were to work at credit repair.  It may not be an easy road to follow but it is possible and it doesn’t have to take several years.  With a little discipline and some hard work you could improve your credit rating so you can get that new car or house that you need.

Ways to Improve Credit Rating – How a Bad Credit Rating Can Affect You

A bad credit rating will make it very difficult to buy anything on credit.  You won’t be able to purchase a new car or home and in some cases it is even difficult to find landlords to rent to you.  Your credit rating is very important and you should do everything you can to improve it once it gets bad.  Even if you don’t need a car or a home there is always the chance that something will occur where you will need to rely on credit.  Some banks won’t allow you to open a checking or savings account if you have bad credit ratings.  That is why it is so important to find ways to increase credit rating.

Credit RepairCredit Reports

Before you can increase your credit rating you need to know how bad the situation really is.  You can get a copy of your credit reports from the three major credit bureaus.  These can be free through some companies so check around to find them.  Your credit report will list all the bad reports that have been made to the credit bureaus.  All late payments and delinquent accounts will be listed on your credit report.  You will know what creditors have been reporting you and why.

Chances are you will also find errors on your credit report.  It is imperative that you get these errors corrected right away.  They will have a huge effect on your credit score so don’t allow them to remain on there.  Call the credit bureaus and report the error.  You should also contact the creditors to report the errors.  They can fix the problem on their end.  It could be they forgot about a payment you sent.  Make sure it is recorded on their records too, or you could end up with other errors.

Ways to Improve Credit Rating – Don’t Use Credit Cards

Stop using your credit cards and begin to use cash for your purchases.  Your credit cards are probably why you have bad credit.  Every time you use them you are risking higher monthly payments.  The higher the balance goes on credit cards, the longer you will be paying on them and the bigger your monthly payments.  You don’t have to cut them up; just don’t use them any longer.

Something else you should be doing is paying higher than the minimum payments.  This can also affect your credit rating.  You would be surprised how often you go from minimum payments to paying late.  It is very easy to fall behind when you can only make minimum payments.

Pay Any past Due Balances for Ways to Improve Credit Rating

It will be impossible to increase credit ratings if you have past due balances.  It is therefore very important to get all past due balances paid as soon as you are possible able to.  35% of your credit rating is from payment histories.  That is why you should concentrate on getting caught up.  Once caught up be sure to stay caught up.  Try to get caught up before further collections are attempted.  Once it gets in the hands of a collection agency it will be harder to get your credit repaired.  It pays to contact your credit card companies to see if they will work with you.  They may offer to start fresh so you are no longer behind.

Ways to Increase Credit Rating -Credit Card Applications Can Cause Bad Credit Ratings

Just applying for a new credit card can bring down your credit rating when you are attempting to repair your credit.  Don’t apply for any new cards until you have repaired your credit and are in a position to keep your credit in good standing.

Contact Your Creditors for Credit Repair

You would be surprised how often your creditors will be willing to work with you if you take the time to call them.  When you explain to them your circumstances and why you are behind, they will probably work with you to get you a better interest rate, lower your monthly payments and even drop the late fees.  They have hardship programs that will do all this for you but you have to call and talk to them.  Most people don’t like to talk to creditors because they fear they will be scolded by the company.  Although this does happen, most of the time they will help you out.  Often the help is temporary while you are having difficulties but it is a way to get help and to increase your credit rating.

Ways to Increase Credit Rating – Pay Off One Debt at a Time

Whenever possible you need to pay off one of your debts.  The best way to do this is to choose which should be paid off.  Often people choose the one with the lowest balance.  You should choose the one with the highest interest rate.  Remember that 30% of your credit rating is decided by how much debt you have.  Even if you have to sell your possessions to pay off a debt, you should consider it.  Although things will be tough for a little while, you will consider it a good thing when your credit ratings go up.  You will also see that it is easier to pay your other debts once you are rid of one.

Ways to Increase Credit Rating – Don’t Be Afraid to Ask for Professional Help

Sometimes the going is too hard on your own and getting help through professionals is necessary.  What you need is to contact a credit counseling agency.  They will be able to take you through the steps necessary to improve your credit rating.  They will talk to your creditors to work out better payment options and can help in other ways as well.  It is possible to find free credit counselors.  You should contact the National Foundation of Credit Counseling to get a list of counselors.  Your bills will also contain numbers of credit counselors.

Don’t Give Up on Ways to Increase Credit Rating

It is not going to be easy to get your credit rating back on track.  You will have to work hard and you will have to go without things you would like to have.  Don’t give up however.  Keep working at it and eventually you will be able to enjoy a good credit rating again.  You have to remind yourself how long it took you to end up in bad standings.  It will take time to get back on track.  By following these ways to increase credit rating you should be able to be on your feet in no time.  Once you are out of debt and have a good rating, try to keep it.  Only borrow when absolutely necessary.  Remember to use cash as often as possible.  You could end up with that new house sooner than you think.  Credit repair is possible.