If You Work Patiently And Persistently, You Can Improve Your Credit Score
If you have a bad credit score, it is certainly not good but you can rectify the situation. If you want to remove bad credit from your records, you should take the following few steps:
- You should first know the accounts that are spoiling your credit score. So, you should ask for copies of your credit reports. There are three main credit bureaus and you should get the copies from all the three bureaus.
- You can not assume that all the entries on the credit reports are correct. There can be errors on them also. You should find out if there are any errors. You should immediately write to the relevant credit bureau pointing out these errors. You should write to the creditors also who have included these details wrongly to your account. You should keep on communicating with them till they remove or correct the errors.
- For improving your credit score, you should immediately stop using your credit cards. These debts can increase very rapidly. If you do not pay them on time, the credit card companies may charge you late fees, penalties, interest and interests on interests and so on. So, you should switch to the habit of making cash-purchases only. You should stop buying unnecessary things. You can utilize this money for paying off your debts. You can gradually bring down your debts and this will improve your score. Likewise, you should not apply for new cards also.
- You should not commit the mistake of closing delinquent credit card accounts. Sometimes, closing an account may also affect your credit score. In fact, a card account with a balance will affect your credit score very badly. So, it is wrong to think that you can improve your credit score by closing a credit card account.
- You should immediately get in touch with your creditors and explain to them your financial situation. Most of the credit card companies have what are called temporary hardship programs, using which you can pay less towards the monthly payments. Once you are back to a reasonably good financial situation, you can increase the monthly payments and liquidate the debts faster.
- You should find out ways to pay off your debts. You can try to have a part-time job for earning extra money. If you have any assets, you can sell them and try to clear the loans. If you think with a positive mind, you can find out many ways to liquidate your debts quickly.
- There are many professional credit counseling companies and you can seek their help for finding a solution to your problems. Even the credit card billing statements may contain the details of credit counseling agencies.
- Above all, you should remember that you can not solve your problems overnight. You have got into the quagmire of debts and there is no use regretting about what has already happened. You should look ahead and try to solve the situation patiently. If you plan well and work with patience and persistence, you can liquidate your debts easily and get back a good credit score.