Having a bad credit score doesn’t have to be the end of your financial life. There are a lot of things that you can do to bring that score up and start rebuilding your credit for the future. This article will show you how you can make this happen.
If you want to repair your credit, do not keep a zero balance on your credit card. Lenders look to see if you can pay interest; they want to make money from you, so they don’t really care about your overall balance. Showing them that you have the funds to pay interest will improve your credit rating.
To keep your credit in top notch shape, borrow no more than 30% of the credit available to you. Keeping your debt lower than 30% of your available credit will help you to maintain a strong credit score with the reporting agencies. It also means less owed to lenders and so, less for you to pay back.
To repair your credit, start making your payments on time. Work on reducing credit card debt and try to keep the balances below thirty percent of the total in the future. Paying your cards on time prevents additional late payment fees and builds a positive history. The longer you can maintain a positive payment history, the higher your score will get.
Make your credit card payments on time or before they are due. If you pay them before they are due, you can avoid more finance charges. You should at least make sure they are paid by the date they are due so you don’t have to pay late fees on them.
Also keep track of your credit. Watch your credit report, especially if you have a history of credit problems. You may see unexplained negative reports pop up or new accounts opened that you cannot account for. There’s nothing worse than facing identity theft while you’re already trying to repair a damaged credit score, so try to catch it early.
Having great credit may seem like a dream right now, but if you work hard at it and let time be on your side, you will be able to increase your score and have a credit report that will open up a whole new world of financial possibilities. If you have some patience and perseverance, you can get started on your credit repair today.
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