Bad credit is like being overweight; you can lose the weight gradually but not instantly. Just like that, you can improve your bad credits with time and proper planning. To repair your credit history, we have some tips here that can be useful for you.
- Check your Credit Reports for Error: The first step to making amendments in your credit history is to do a thorough checking of your credit report. See if there is any mistake in the calculation because mistakes do happen. Try to correct them through online services of Equifax, TransUnion, Experian, etc.
- Pay the Dues: Most of the time, people have due payments lined up that are the main cause of bad credit score. This is understandable that people could have been unemployed that is why they have long payments due but it is best to reduce the debt payment. This is probably easier said than done but it is worth it. If you could manage to pay up the whole debt, then you can even ask the creditors to erase the bad credit history.
- Be in Your Credit Limit: It is suggested that when you have a credit card you stay in your budget limit, don’t exceed the credit limit and keep the low credits. It will keep you from sinking in bad credit score. Even if you pay up before the due date this still looks bad for your credit score.
- Make Sure to Pay Bills on Time: It is crucial that you make sure to pay bills on time. Preferably on monthly basis to avoid any bad credits on your credit history.
- Ask a Relative or a Friend to be Added to Your Card Account: In this process, one can become an authorized user of someone’s credit account. It is like you can convince a friend to be added to your credit account and now you both share the credit history as same. This is how you can boost your credit scores. This option is considered risky as people get conflicted over things while sharing the same account.
- Raise Your Credit Card Limit With Time: When you get a promotion or something like that it is better than you ask your creditors to raise your credit limit. This could work only when you trust yourself to spend on shopping accordingly.
- Don’t Buy Too Many Credit Cards: In case you are a big spender and like to go shopping more often, you should have just 1 or 2 credit cards with considerably large credit limit otherwise having too many credit cards is just show off for your credit limit. If you like to keep more than 2, then you should pay all the bills on time to rebuild your credit score.
- Don’t Close the Unused Credit Card Accounts: People often think that closing an account that hasn’t been used or the one we have used too much can be shut off permanently but it doesn’t work like that. The bad credit history will still be visible on credit history.