Emergencies and carelessness often lead to our creditworthiness going downhill. Lowering our scores makes borrowing and lending a big nuisance, as these lenders see you as a high risk for paying back potential debt to them.
You can extend the loan or credit, but at higher interest rates. There are ways to get back the credit points you are entitled to. First, you need to get all three credit reports as soon as possible.
Do not try to get by with just one. You must receive all three, as each one may contain different data. When you receive them, use a fine-toothed comb to see them through completely.
Note down any errors and report them to the office immediately. Even the smallest error in your reports can result in a lower score. Make sure that all three reports have the same information as the others.
Inconsistencies can also affect your chances of getting a good rating from the credit-control agencies. Sometimes the credit card companies do not report to all three offices, so check and make sure that all three have the same facts and figures.
Look at the debts you owe your creditors. Negotiate with the companies about the debts and have them paid if possible. If they report that the debts owed to them have been paid in full, your credit reports will reflect this positive action and your credit rating will be improved.
If it is not possible to pay them all, pay as much as possible on a regular basis. Make sure that you pay all your bills on time. Late payments, especially the most recent ones, will appear in your reports and will be included as a drawback in your credit rating.
Don’t apply for further debt until you have paid all your old debts. All your debts will be shown in the credit reports. So the more debt you have, the lower your score will be until it is paid off.
First, pay back all your old debts and make sure that they are reported to the credit-control agencies. Even if you are paying off your credit cards, you should keep the accounts open for at least some of them.
Closing all accounts will have a negative impact on your bottom line. Even if you do not plan to use these accounts again, it still looks better that the account is open and has no balance.
It also looks better if you ask for very small amounts and then pay them off on time and in full each month. It shows your ability to repay your debts. Don’t pay another company to take care of your credit repair unless you know for sure that they are highly recommended.
It is best if you do it yourself. Most companies that claim they can repair your credit immediately are scammers who take your money and do nothing for your credit. Work hard to keep it clean and pay all your bills on time. With a little care in budgeting your bills and keeping to a schedule, you can turn a negative assessment into a more positive one.