If you've got less than perfect credit, you're probably sick of it holding you back in life. Even if your situation feels hopeless, there are ways to get your credit back on track.
Rebuilding Your Credit
The great Teddy Roosevelt once said, "Far and away the best prize that life offers is the chance to work hard at work worth doing." Repairing your credit is something you'll find to be extremely beneficial and worth doing, but it’s going to take some hard work.
Credit repair means changing your spending habits, getting on a stricter budget, and developing financial discipline. It’s not going to happen overnight either, but I promise you it will be worth the effort.
A Credit Repair Checklist
Here’s a straightforward checklist to get you started on the path to better credit.
- Start Fresh
If debt is what caused your problems, it's time to stop charging things to your credit cards. You can't afford to accumulate any more debt if you truly want to improve your credit. You need to set a budget that keeps you within your means and you need to stick to it.
- Obtain Copies of Your Credit Reports
It’s easier to identify your credit problems if you can see exactly what the creditors see. You're allowed one complimentary copy of your credit report per year from Equifax, Experian and TransUnion. Each will be slightly different, so it's important to stay on top of all three. Make sure they are accurate and up to date.
- Correct Any Incorrect Information on your Credit Report
Thoroughly examine your reports for any inaccuracies. The Fair Credit Reporting Act gives you the right to dispute errors and information that is inaccurate, incomplete, out of date, or unverifiable. If you can prove it to be false, you can get such inaccuracies taken off your report, which should improve your credit standing.
- Make Payments, Especially on Delinquent Accounts
Hopefully you are sticking to your budget, because it's time to prioritize your debts and pay off any delinquent accounts. Once you get current on any delinquent accounts, you need to remain current on them. Payment history has the largest impact on your credit score, so you need to put making timely payments above all else.
- Prioritize Your Debt
After any out-of-date accounts are taken care of, it's time to decide the best way to attack your remaining debt. Evaluate the interest rates, balances, minimum monthly payments and other relevant information for each line of credit and debt you have. Then, figure out which order to pay them off. Generally, it makes the most financial sense to go after the ones with the highest interest rates first.
You Can’t Repair Credit if you Don’t Have Any
If bad credit has left you without any lines of credit, then the first step on the path to repair is getting a lender to work with you. At Auto Credit Express, we want to help those with damaged credit find the auto financing they deserve. Get started today by filling out our fast and free online application.