Bad credit can make your life difficult. For example, it will keep you away from purchasing an apartment, mortgage or even a credit card. On the other hand, it will hook you to high interest rates, which can be frustrating. If you are going through this frustration, you can quickly take a look at these 5 useful tips to fix bad credit. Then you will be able to boost your credit score and overcome the negative effects that you have to face in the future.
- Obtain a copy of the credit report
Before you do anything, you should request and obtain a copy of your credit report. Based on that, you can proceed to the next actions that you do. You need to have a clear understanding on how to start building your credit. This is where the credit report will be able to help you with. By taking a look at the credit report, you can figure out where you exist as of now. Along with that, you can take the actions to improve your credit score along with time.
- Dispute the errors
When you go through the credit report, you will be able to locate errors in it. By analyzing those errors, you will need to raise disputes against them to the creditors. You have all the rights to do it. After raising the disputes, you can get those false entries removed out of the credit score. Along with that, you will be able to end up with boosting your credit score in a convenient manner.
- Refrain from new purchases with your credit card
You are on a mission to fix bad credit and you will need to do some activities to end up with receiving positive results. One of the activities that you have to do is to refrain from making purchases out of your credit card. The new credit card purchases that you make will increase your overall credit utilization rate. Therefore, your credit score will further be impacted negatively. If you can refrain from new purchases using the credit card, you can easily avoid it.
- Settle the due balances
The timely balance payments you make will contribute towards around 35% of the overall credit score. Therefore, it is important for you to make sure that you are settling the due balances that you have. If you don’t pay attention to do it, you will get further behind on the payments. This can create a massive damage to the credit score.
- Refrain from getting new credit cards
You should not apply to get new credit cards as well. That’s because there will be hard inquiries on your credit history. They can create an impact on the credit score. Hence, it is a good idea to refrain from getting new credit cards.
Keep these tips in your mind and you will get the much-needed support to fix bad credit.