If you are carrying the weight of bad credit on your back you will pay more for car loans, credit cards and mortgages. Heres seven proven strategies that will allow you to turn your situation around quickly:
1. Pay down your credit cards. The goal is to get your balances below thirty percent of the credit limit on each of your credit cards. Most experts will tell you to pay off the card with the highest rate first. I recommend to my students to pay down the cards that are closest to their limits.
2. Watch your credit card usage. You can increase your score by limiting your charges to 30 percent or less of each cards limit. Some may find it difficult to keep track. For those individuals I recommend that you use a check register.
3. Review your credit card limits. Your credit score may be lower do to the lender showing a lower credit limit than you currently have. Request that the lender update their information.
4. Don’t forget the old credit cards. The more established your credit history the better. The drawback is if you stop using your old credit cards the lender may halt updating your account. So dust off those old cards and put them to use…
5. Get a do over. If you have been a good customer a lender will take that into consideration when you make a late payment. Give them a call explain the situation and more than likely they will excuse the late payment. It doesnt hurt to ask.
6. To debate or not to debate. The older a negative mark is on your credit report the better the chance that you will win the debate. I recommend that you dispute all negative marks on your credit. What do you have to loose.
7. Knowledge is financial freedom. The more you understand about the credit repair process the better off you will be.
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