There is nothing worse than a poor credit score hanging over your head. It will follow you around for a long time, and it can take several years to repair. You need to make some changes in your life to get your credit back on track, or it will haunt you for a long time.
There are quite a few things you can do to help bring your credit report back on track, even making you eligible to apply for credit later in the future. The first thing you will want to do is get a current credit report for yourself. Make sure that there are no errors on your report, and that everything is correct.
Look at your credit report to make sure that there are no unauthorized credit checks. Companies checking your credit can actually bring your credit report down, and you can call them to have them removed if they are unauthorized. Each company that has checked your credit should have a phone number on your report.
The next thing to do is to look at the debt that you currently have. If there is any way in your budget to pay them down, do so. If you have multiple credit cards you should transfer some of the balances to even out the amounts. Maxing out a credit card is not a good thing on your credit report.
Work with companies and collection agencies to get very old past debt off of your credit report. Companies and collection agencies are still willing to work on these accounts, just to get rid of them. You can settle for a fraction of the amount, and sweep the negative off of your report.
Make sure that anything you have done between you and the individual companies is in writing. Keep this documentation in case you need it at a later date. Getting your credit report updated takes months, and if you are to apply for credit sooner than that, you will need the proofs to take to the bank.
If you do not have a credit card because of poor credit, bite the bullet and open a high interest rate card to repair your credit. Charge only a small amount to it and pay it off in a timely manner. You need to show future lenders that you may have problems paying your bills in the past, but you are more responsible now. This change can take several years, and it won’t happen overnight.
You can really clean up your credit report, but it is going to take some time. Learning how to manage your money better will help in the future, but sometimes you need to go into the past and make repairs.