How to Re-establish Credit-Worthiness: 10 Tips for Improving Your Credit Score
Have you had trouble with your credit in the past? If so, you’re definitely not alone. After all, maintaining a perfect credit history isn’t easy.
It’s no secret that good credit can make life go more smoothly. Especially when it comes to buying a house, a car, or applying for credit cards. This is because lenders look at your credit score when deciding where or not to approve loans.
This article takes a look at simple steps you can take to improve your credit worthiness. Keep reading to get the inside scoop into improving credit regardless of what you been through in the past.
1. Get a Copy of Your Credit Report
The first thing you need to do is order a copy of your credit report. This will show your entire credit history and provide insight into items that have reduced your score. Don’t be afraid of your credit history. This is a tool you can use to start moving in the right direction.
2. Pay Down Existing Debt
Debt is a killer. Because when you owe money, you’re continuing to pay for past purchases while accumulating additional interest, fees, and penalties. Paying off existing debt is the quickest way to reduce monthly expenses and immediately improving credit. This is a much healthier way to live.
3. Avoid New Credit Cards
If you already have credit cards, avoid applying for new ones. Remember, credit cards are not your friends. If you can’t afford to pay for an item with cash, just walk away and wait until you can.
4. Dispute Errors On Your Credit History
Another reason to purchase a copy of your credit history is to identify errors. It’s very common for errors in reporting to occur. This means that creditors have made mistakes that are causing your score to be lower than necessary. Once you’ve identified an error, contact the creditor immediately so that they can take steps to correct it.
5. Don’t Close Existing Credit Accounts
It’s important to avoid using existing credit accounts, but don’t close them. Why? Because one of the keys to improving credit is to show that you have plenty of available credit that you aren’t using.
6. Consolidate Your Credit Cards
You can also improve your credit score by consolidating existing credit card debt. This way you’ll owe on one card rather than multiple cards.
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7. Pay Off Any Past-Due Balances
When you are past due on any account, catch up on the over-due balance as quickly as possible. It’s fine to have debt, just make sure to stay current on all open accounts.
8. Work with Your Creditors
Keep in mind that most creditors will be happy to work with you. When you’ve fallen behind, talk to your creditors about reducing interest or lowering your monthly payment.
9. Be Patient
The truth is that you’re not going to have perfect credit overnight. So be persistent and patient. Just remember that each step along the way will make a difference.
10. Work with a Professional Credit Counselor
Never underestimate the value of working with a credit counselor. These are professionals who can point you in the right direction, offer guidance, and help you achieve your financial goals while avoiding painful mistakes.
A Complete Guide to Improving Credit Worthiness
The road to financial solvency can be long and painful. Fortunately, these tips for improving credit worthiness will help you get started and make the process a lot less stressful.
Keep scrolling to discover more great lifestyle tips and advice.
June Potter wrote this article on behalf of Free Up. Free Up this the fastest-growing freelance marketplace in the US. Free Up only accepts the top 1% of freelance applicants. Click here to get access to the top freelancers in the world.
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