Having good credit is very essential. The better your credit is, the more you’ve got a shot at having a lower interest rate on your loans and credit cards, as well as other pros that come with a good score. But most people, imperfect as humans can be, often start off on the wrong foot. Due to perhaps some circumstances beyond their control, they end up having bad credit. This can be a cause for worry and begs the question, can bad credit be fixed? In one word, yes. How then, can you fix and improve your bad credit?
On the road to attaining a good credit score, knowing where to begin can be a little difficult. In this article we will be highlighting the steps one can take to fix and improve your bad credit. Strap on.
Steps to Fixing and Improving Bad Credit
The specific steps you can take to help you improve your credit score are dependent on your credit information. However, there are also a few general steps that one can take to better his credit score.
1. Set up your Credit File
The first step to making your credit score better is opening new accounts that report to the major credit bureaus. Before you can start having a good payment record as a borrower, there has to be accounts in your name. So opening a good number of active credit accounts can help with this.
These accounts could range from credit builder loans to secured cards to great reward credit cards. Getting added as an AU (authorized user) on someone else’s account with good payment history can also be beneficial.
2. Avoid Missing Payments
Another essential factor in determining your credit score is your payment history. Having a lengthy history of prompt payments can aid you in achieving outstanding credit scores. To carry this out, you cannot miss credit card or loan payments by over 29 days. Payments exceeding 29 days when reported to the credit bureaus can hurt the credit score. Creating a schedule for automatic payments can help you stay clear of having missed payments.
3. Update and Settle Past-Due Accounts
If your bills are running behind schedule, updating, and settling them can prove helpful. Having all your accounts current and settled can have a positive impact on your credit score. In addition, it prevents future additional fees as well as late payments from being appended to your credit history.
4. Pay Down Revolving Balances on Accounts
Possessing high balances on revolving credit accounts can lead to an elevated credit utilization rate, thereby affecting your scores negatively. Pay down those balances.
5. Don’t Open Too many New Accounts
While opening a new account aids in building your credit score, you may also want to minimize the frequency by which you open new accounts. Too many new accounts results in hard inquiries on your credit report and therefore hurts your credit score.
So, if you find yourself in need of credit repair, applying the steps above can help improve your credit score. In addition, you can contract a 007 Credit Agent to help handle your entire credit repair company process for you.
