Your credit is fixable! Bad credit can feel like an anchor weighing you down. Interest rates skyrocket, loans get denied, it can even affect your search for a job.
For a quick boost to your FICO score, start paying down your credit cards. Your FICO score is heavily influenced by how much available credit you have. Get your credit card balances down to where you are only utilizing 30% of the available limit at most and keep them there.
You need to keep in mind that repairing your credit is a very long and tedious process, and it requires a lot of time and patience on your part. If any company contacts you and says they can solve all of your problems right away, they are being dishonest.
When looking for help in repairing your credit, beware of companies that promise to improve your FICO credit score by a certain number of points in a certain amount of time. These are almost sure to be false promises, and may well involve the use of fraudulent practices which will only end up getting you in more trouble.
A great tip for improving your credit rating is to regularly receive your credit report and look over it. It is important to know your credit report so that you are aware of it. If your credit report is not what you want it to be you can take measures to improve it.
Paying bills on time seems like a no-brainer to most people, but late or non-payment of bills is the number one reason people nowadays have poor credit. It makes good sense to have an emergency fund for paying bills during lean times.
You can help repair your credit by making sure all your bills are paid on time. When a potential creditor looks at your credit report, it looks a whole lot better to see that you are keeping payments up in good faith!
Throughout the process of repairing your credit, keep in mind that there are no shortcuts to fixing your credit. Credit repair is a lengthy process requiring dedication and patience. Take quick-fix offers with a healthy grain of salt, and remember that credit solutions that sound too good to be true usually are.
An important tip to consider when working to repair your credit is where the credit scoring system came from. It is important to know this because there is one main system that the biggest reporting agencies use, FICO, and this system was created in order to provide a more uniform method in judging one's risk for borrowing money.
This is not going to be an easy process. Rebuilding your credit takes time and patience but it is doable. The steps you've gone over are the foundation you need to work on to get your credit score back where it belongs. Don't let the bad choices of your past affect the rest of your future.