Are you suffering through this economic downturn with bad credit? Well, like you, thousands of Americans are facing the same troubles. However, by doing ten easy things, you can improve your credit score and begin rebuilding your life. Fixing your credit is going to be a long process, but once you’ve achieved your goal, you will be completely relieved that you took the plunge and came out on top.
1.) Don’t Bounce Checks
While bounced checks don’t appear directly on your credit report, every bank and potential lender has access to that information, and it could keep you from getting a home or auto loan in a snap.
2.) Pay Your Bills On Time
Although this may seem normal to some people, others have trouble staying on top of paying their bills, and their credit suffers because of it.
3.) Contact Local Lenders
If you go to a lender in the neighborhood versus a national chain, you are more likely to get a credit extension because they take the time to understand your unique situation versus putting you through a system that will automatically approve or deny you.
4.) Start Small
If you have had some credit discrepancies in the past, there is a reason they are there. Don’t get in over your head with charges you think you can pay off, because of the reality of the situation is, you can’t.
5.) Check Your Credit Report
At least once a year to make sure the information is accurate and you are identity theft free.
6.) Secured Credit
Keep it safe by applying for a secured credit card because it will help you establish some credit by having a deposit to cover the charges you make. This is a fail-safe way to prevent yourself from going too far on your spending.
7.) Apply With A Co-Signer
If you need a car and know you will never be able to get a loan, find a close friend who can trust you and ask them to be a co-signer. This will show the lender that you have someone vouching for you that you’re good for the deal.
8.) Before Getting A Loan, Check Your Credit Report
It would be very embarrassing to walk into a bank for a loan and be denied for something like identity theft or a small error on your credit report. Take care of this type of thing ahead of time and you will be 100 times more likely to get a loan.
9.) Avoid Changes in Residence
Lenders like to see someone who is stable, just like when it comes to career, this means staying put. Jumping from town to town is a red flag that you are not a reliable person.
10.) Increase Your Income
This is obviously harder than it sounds, but to get rid of debt and stay ahead of the game, you need to make more money. Try impressing your boss, or even being so bold as to ask for a raise. People aren’t going to just hand you money, you need to earn it.
Your credit report is the basis for your financial standing. No matter how slick or smart you may be, no bank will touch anyone with a low credit score. It's their money, why would they want to take a bigger risk than they need to?
If you don't know where your credit report score is at, now's the time to take a peek. Don't get surprised with a low credit score when you go in to review your report with a potential lender or even an employer, find out for yourself within minutes.