Having poor credit is very frustrating, especially when trying to apply for more credit. It can take years of repair and frustration dealing with creditors you do not want to. But, you can clean up your credit and make a fresh start with just a few painless steps.
As simple as it may sound, start immediately paying all of your bills on time with at least the minimum payment. As easy as it may sound, it is one of the most important steps. You may have a lot of bad things that have happened in the past, but this will show your future creditors your new responsible habits.
If at all possible, stop using your credit cards and start working towards paying off of the balance. It can be very difficult to do so when money is tight in the home, but this is a great way to clean up your credit. You want your future creditors to see that you do not have high balances on your cards.
If you have multiple credit cards and do not really need all of them, pay off some balances and cancel the cards. The more cards you have out there, the more potential debt you could have if you needed them. Unused credit lines can count against you in the long run.
If you have a lot of credit card debt, consider a consolidation loan. This will put all of your credit card debt into one payment. You can also get some of the high interest rate loans lowered this way. Make sure you work with a good consolidation company, who is willing to help you fairly.
Pull a copy of your credit report to make sure that everything on it is correct. If you spot any errors, make you contact the company to get anything fixed that may need to be. If you are willing to work with them, they will also do the same for you.
Avoid making any large purchases until you have cleaned up your credit. Unless you have to replace your current vehicle, try not to make any new debt to show responsibility to your future lenders. Anything else larger in size, make sure you pay cash for.
Avoid any kind of credit repair company. They try and promise you that they can fix your credit report quickly. There is no such thing. Often times, they can make your credit worse. Repairing you credit is going to take years, but making these simple changes can put you on the right track to a great financial future