These days, there is actually something worse than having no money and that is having a bad credit record. Not only will bad credit diminish your spending power, it also lessens your chance of being able to borrow money, and not to mention, it can definitely stain your reputation. If you do have bad credit, it is not the end of the world for you since you it is still very possible to repair your bad credit record.
The best way to clean up your name is by proving your ability to look after yourself in managing your finances. There are several steps of doing this, each one helping you clear your bad record and establish yourself as someone who would be ready to get credit in the future. Here are some tips that can help you if you have bad credit.
1. Settle all your accounts on time. Pay all bills as soon as you get them so you would not forget when the due date comes. Your payment history would be counted by as much as 35% in your credit rating. If you have enough funds, consider availing of automatic transfer so that your payment would indeed arrive on time always.
2. Show efforts that you are paying off your past debts. By paying your debts, even in small installments, you are showing that you are responsible enough to at least try to clear up your obligations. Keep the payments regular and pay as much as you can afford. This will prove to credit bureaus that you are indeed worthy of a better score.
3. If you do miss out on some payments, catch up as soon as possible. Credit bureaus not only look if you miss payments, they also take into consideration the time your bills remain unsettled. You still have a chance to clear your name if you respond quickly.
4. Register for elections. It may not sound connected at all to credit ratings, but being in the electoral registry does affect your credit rating positively. So register for the upcoming elections.
5. Check out your credit report, get a copy for yourself. The credit report would list down the reasons for your low score. This can help you correct mistakes you have done in the past or avoid doing more mistakes in the future.
6. If you are applying for new credit accounts, limit yourself to only one or two. Perhaps one bad credit mortgage and a bad credit card would do so you can easily manage them. If you apply for any more than that credit bureaus may keep their eye on you.
7. Do not close your old accounts. You will not be able to erase your bad credit record by closing your old accounts. Just pay them off and keep them clean. You can actually increase your credit score by having accounts with higher ages. This increases your average account age and can help boost your rating.
Again, bad credit is not the end of the world for anyone including you. If you know how to repair your credit rating you can indeed recover and establish yourself as a good creditor once more. The path may not be that easy, but it is not at all impossible.
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