Credit Poor Credit

Posted by admin on March 25th, 2009 at 12:00am

Question:
How may I repair my credit poor credit?
How may I improve my credit and poor credit score? I have bad credit and am trying to make it decent once again.

Answers:
There are a number of things that you may do. If you have any credit cards already, pay the balances on time and be sure that they are never maxed out. Generally, you would like the balance to be no higher than half of your credit limit (that is as vital as paying on time) Try to avoid opening or closing any accounts while you are working towards restoring your credit poor credit. Avoid applying for any other credit. Obtain a copy of your credit report and argue anything negative that you believe is wrong. Of course, if you own any collection accounts, pay them back if you are able to, but even if you are not able to, you can still have improved credit. The longer a collection account or any other negative item has existed, the less impact it has on your credit score, so the BIG picture would be that from now on manage scheduled payments and try to have credit balances under half of the limit.
If you do not have credit, get a couple secured credit cards (see Household Bank or Orchard bank) and then charge small balances on them and issue on schedule payments every month.

To begin with fixing credit poor credit, get a free copy of your credit report by the three big credit bureaus: Experian, Equifax and Transunion. Pay back existing accounts and close any that are completely paid for and not used. Then avoid applying for anything you do not require. Each time you apply for credit you take a “Hit” on your credit rating. Finally, try to pay higher on your credit cards. The interest rate is typically high so pay as much as you are able to afford.

Pay back loans.
Pay on schedule or beforehand.
Never just pay the minimum payment.
Try to obtain a small 300 dollar credit card, charge 50 bucks, pay say 70 dollars. Do this each month for several months. Your credit rating will improve and they will offer you bigger credit cards.

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