Dying of Debt: Ideas to Improve a Low Credit Score
It can be tough to live with a low credit score, but you don’t have to let it prevent you from achieving your dreams. Your credit score is not going to miraculously fix itself overnight, so you are going to need to change all your current spending habits. Taking the time to work with your creditors will slowly let you start to increase your credit score and while there are dozens of things you can do to improve it, these are the four most important.
Examine the Report and Dispute Any Errors
It is impossible to fix your credit score if you don’t know what’s keeping it so low. Finding and fixing the biggest problems on your credit report will inform creditors you are taking the time to correct and change financial habits, which should help with turning the numbers around. You should also examine the credit report for any potential errors to get them removed immediately.
Keep Credit Card Debt Low
Using credit cards responsibly is one of the best ways to improve your credit score, but you have to make sure you keep your debt low. If you spend more than 30 percent of your credit limit, then it will start to negatively affect your score. Keeping the debt ratio below 10 percent is ideal for maximum benefit on the credit report.
Pay Bills on Time
Nothing ruins a credit report faster than not paying your bills on time. Creditors want to know they will get their money back if they loan it to you, and the best way to ease their mind is by paying bills on time. If you have trouble remembering when your bills are due, then set up reminders on your phone calendar each month. You should also get any past dues current as soon as possible.
Don’t Be Afraid of Bankruptcy
You shouldn’t be afraid to contact a bankruptcy law firm if your debt is getting out of hand. While a bankruptcy will initially lower your credit score, it won’t take much time to bring up to acceptable levels after starting over. The Morrison & Murff frim say chapter 7 bankruptcy will discharge debts like payday loans, personal loans and credit cards. Showcasing solid credit decisions immediately before and after a bankruptcy will look great to creditors and rapidly increase your credit score.
Improving a bad credit score may seem like a daunting task, but it can actually be achieved rather easily if you are willing to make some tough changes. If you follow these four items, you should be well on your way to a much better credit score and a brighter financial future.