repair credit score

Michael Gentleman asked:


Repairing your credit history is no easy task, but it can be accomplished with less difficulty if you do a few things. The most important thing to do is to pay all of your bills on time. Paying them late can have a negative effect on your credit ranking.

Another important thing to do is order your credit reports. Read and scrutinize them carefully, along with your payment history. Look for missed payment and maxed out credit lines. After you assess your payment history, call your creditors to try and negotiate lower payments. Many will be willing to work with you, since you are agreeing to pay your debts, but you must be good at negotiating and creating a concrete plan.

After you do that, pay off all of your credit card bills. Keep the lines open, but use only one card, and only if it’s absolutely necessary. At the most, use this ‘emergency card’ a few times a month for smaller purchases and pay the bills on time. This will help raise your credit score.

Keeping the credit cards activated but not in use is actually a positive; you want to have a long history with several lines. Do not file for bankruptcy. Bankruptcy files can stay on your credit report for up to ten years. You can also get a friend or relative to co-sign a loan for you. Make sure if you do this that you make your payments on time, since the other person’s credit score will be affected by this as well.

Putting the money from the loan into a savings account, and then using that money to make the payments is a good way to ensure the payments are made and that the money is available. If possible, round payments up to the nearest $5 or $10 dollars.

Paying off a small loan will reestablish credit, and should be relatively easy to obtain with another person co-signing with you. You can also get a secured credit card, keeping money to make the payments in an account. As long as you create a budget and secure funds to pay off your bills getting out of credit card debt can be accomplished with less hassle. Making sure all issues are resolved and there are no mistakes on your credit report will help as well.

However, the most important factor in raising your credit score is time. Make your payments on time, keep credit cards with no balance open, and make loan payments on time, and your credit history will improve.



Melinda