Repair your credit report can be a lot of work, but it holds the key to your financial future. You will want to repair your bad credit now so that you may obtain credit in the future when you really need it. There are a few things that you can do to start repairing your bad credit immediately.
Obtain a free copy of your credit report. You are allowed one free copy of your credit report each and every year, and it is recommended that you do so every year to stay on top of your credit. Never check your credit more frequently than that because several inquiries on your credit report can be a negative thing to potential lenders.
Look at your credit report to see if any creditors have made mistakes on your report. It is possible that a creditor made an error on your report and your score has been lowered because of it. You will need to inform them that there is an error on your report so that it can be fixed.
Take a look at any credit card debt that you may have. If you have multiple credit cards that are not carrying any balances, you may want to consider closing one of them, preferably one with a higher interest rate. Having multiple credit cards open on your credit report can be a bad thing.
Balance out your credit card balances so that none of them are max out. While you may have more than one card, you do not want to show potential creditors that you have maxed out your balances. If you cannot pay them off, level them out by transferring a portion of the balance.
Do not obtain any new lines of credit. Try and pay cash for everything so that you do not have to open up any more lines of credit. If you have to, hold off a car purchase as long as possible. It is better to try and start repairing your credit for a minimum of six months before you try and get another line of credit.
Call creditors that you may have past due accounts with to see if you can work out a payment plan with them so that you can get back on track. If you are willing to work with them, they will be more willing to work with you. Any agreement you get with a creditor should be in writing for your own personal records.
There are a lot of ways that you can repair your bad credit and get back on track. You need to take the first step of action and take charge of your credit, you will be happy that you did.