Society often judges you more by your credit score than your personality, actions or resume. From mortgages to employment applications, the need for a good credit score rating is higher than ever. If yours is lower than you want and you're looking to repair it, the following tips can help you get started.
Get a copy of your credit report from all three major credit bureaus, TransUnion, Experian and Equifax. These reports will show you where you stand with each debtor you have worked with.
Pick the credit card with the highest interest rate and work on paying that one off first. Then move down the list until you've managed to pay everything off. You start with the most first since these are going to cost you the most if you let them sit.
If you have trouble remembering to make your monthly credit card payments, see if you can set up an automatic debit from your bank account. This way you never have to worry about missing a payment, and you can always pay extra if you want to.
Remind yourself to be persistent when you are trying to work on enhancing your credit score. These matters take time to be done properly because there are specific rules and procedures that you must follow when dealing with the credit bureaus. If you understand and follow these procedures correctly, you will see positive results.
If you are trying to repair your credit after being forced into a bankruptcy, be sure all of your debt from the bankruptcy is properly marked on your credit report. While having a debt dissolved because of bankruptcy is hard on your score, you do want creditors to know that those items are no longer in your current debt pool.
To improve your credit rating going forward, pay attention to the quality of your creditors. This doesn't impact your credit as much as other factors, but having credit accounts with banks and auto manufacturers is better for your credit score than having credit accounts with general lenders like finance companies. You can often identify a general lender by the fact that it has "Finance" or "Bank" in its name.
As mentioned earlier in this article, a good credit rating can mean the difference between obtaining a mortgage or being denied a loan application. It can even decide some job opportunities. Clean up your credit reports and ratings, and you'll start feeling better about your financial future.