In today’s society, no one can overemphasize the importance of a good credit line. In fact, having a bad credit record is even worse than having no money at all. Without bad credit, it would be very difficult to get loans and do other transactions that would soon become necessary in the future such as applying for an apartment. However, people with bad credit need not sulk since they can still save themselves from their bad record through credit repair.
Credit repair may be done with the help of a financial adviser, but it also helps to make some adjustments yourself. The best way of doing this is by proving that you are indeed capable of managing your finances. There are many ways of doing this, some of them are quite simple, but they can definitely help mend a broken credit record.
Here are some important tips for credit repair:
1. Be sure to have your accounts settled on time. Whenever you get your bills, pay them immediately even way before the due date so you would not forget. Credit bureaus have high regard for payment history, and they factor it in your credit score, taking up as much as 35% of the score. The good idea is to have your accounts registered on automatic transfer so that payments would immediately be made.
2. If you have past debts, pay them off, or at least show that you are trying to. If you do not have enough money to pay for everything, keep paying even in small installments. This will show that you are indeed responsible enough in trying to clear your accounts. Pay as much as your budget allows and pay regularly. Credit bureaus will notice these efforts, increasing your chances of getting a better score.
3. In case you do miss paying some accounts, try to catch up immediately. Not only do credit bureaus look at your missed payments, but they also check how long bills are kept unpaid. If you respond quickly, you can still show that you can indeed pay your debts even if it is a little later.
4. Register to vote. While it may not seem to be connected, registered voters do have better standings with credit bureaus. It can show that you are a responsible citizen as well as a responsible creditor.
5. Get hold of your own copy of your credit report. In the credit report, you would find a list of reasons you got a low score. Knowing this is necessary for credit repair and to avoid future mistakes.
6. Limit yourself to only one or two new credit accounts if you do intend to apply. Possibly, a bad credit card and a bad-credit mortgage would be enough for you to manage easily. Getting several credit accounts at once may make you a hot object for credit bureaus.
7. Keep your old accounts, do not close them. Closing your old bad accounts will not erase them from your credit record. Pay them off and then keep them clean. Having old accounts can actually increase your average account age, which can help boost your credit rating and help repair your record.
Bad credit is not impossible to repair if you know for yourself the important steps to mend your broken record. Try these steps yourself and see your credit line improve.