Bad credit will describe the finial failures in your life and makes your employers think that you have very bad managing and financial skills, which may affect your job status. The bad credit will leave a mark on your credit score. Bad credit will occur when you don’t pay the bills in time or if you don’t pay the debts at all. The bad credit is very stressful but t is not difficult to fix and is definitely not the end of the world. The situation you are in may seem hopeless but the bad credit will not last forever if taken proper precautions and measures. There are few things which you can do to improve the credit score status. These might seem simple but they are effective.
Get your copy of credit report:
You can start by getting a copy of credit report because you can’t decide what to do, without taking a look at your credit report. The credit score will include the latest status of your debts and accounts that are the reasons for bad credit score. The three major credit bureaus will provide the copies of the credit report. Apply in all the three bureaus and get your copy now.
File a dispute if you find an error in the report:
It is important to check the credit report you received properly so that you can find errors and non-updated details in the credit report. After finding such mistakes, you can simply start a dispute with the bureaus so that they will update the report and thus your bad score will be fixed to some extent.
Avoid purchasing new cards:
This is a must because new credit cards will automatically increase the debts and thus, more bad credit. The credit utilization will increase with the new card which is why you should avoid purchasing new credit cards at all costs. Pay the cash instead of using your card so that you can reduce the bad credit score in future.
Contact your creditors:
Make sure that you are in contact with your creditors. They can help you to improve your credit score, but surprisingly most of us don’t know this fact. We will try to avoid the creditor calls at all costs, when we have debts. Do not attempt to block your creditor’s calls, whether it is a private lender or the bank.
Pay off the past balances:
Try to find ways to pay off the debts that are due. The further you put off payments, the more you are likely to walk away with bad credit. Talk to your credit providers so that they can consider your reasons and can give you some time off or reduce the interest rates. Consolidating your debts with a single bad credit personal loan can help reduce your interest rate and give you more time to repay the loan.
Do not apply for new credit cards:
If you are in the mode of repairing your credit score, you should not make encourage any applications to new credit cards. The enquiries made on your credit score will increase the bad score. The average credit age that you get will get lower with the new credit card application.
Leave the accounts open:
Do not lose the accounts. Leave all your accounts open. Closing an account with debts will increase the bad score and will affect the credit quite badly.