Once you find yourself faced with a bad credit you might be asking yourself how do I repair my credit by myself? The immediate problem you face is that there is no quick fix solution to get you out of the mess. You will require patience as you implement the following measures to help you get out of the bad credit. The first Step is to CRITICALLY STUDY YOUR CREDIT REPORTS which you can obtain easily from credit reporting agencies. Once you have acquired your credit reports, study the reports to take note of any errors which if found will be corrected by the agency at no cost. Check if your reports contain negative marks which would be from events that took place a long time ago. It is also important to request a copy of your scores considered by any creditor who might have denied you credit.
Here are the steps to follow to repair bad credit
FIND OUT WHAT WENT WRONG. To effectively fix your credit, you need to know where you failed in the first place. it could be a series of actions or a single event like. It is easier to determine this as credit reports will point an indicator to what went wrong. It is Important to also come up with a list of the credit cards you own, the balances they have among other data. If you find that you spend more than you make, then the problem is right there. It will require you to cut back on your expenditure or come up with ways of making more money. You also need to
INCREASE YOUR SCORE. It is important to pay what you owe on time and take other steps that will help you push your score upwards. This is because a certain percentage (35%) of your FICO score comes from the promptness of clearing your bills on time and thus it is the largest factor that determines your score. To push your score upwards, also try using your credit wisely. You should strike a balance between the amount you use monthly on your credit line and the total credit line you have The higher your balance runs versus your credit limit, your score will dive downwards. Alternatively you can create an emergency fund in the savings account to prevent you from overutilizinq your credit balance. Next you should
PROTECT THE AVAILABLE CREDIT. It is not advisable to close accounts when your credit is low yet you still possess cards. Many do this with an intention to raise their credit scores. However, an older account is more profitable and hence you should keep your credit relationships. Avoid revolving balances but if you have them, it is not advisable to use cards to pay off the debt. You should not take cash advances as some issuers may think you are in a financial crisis. Loans should also be paid on time, and avoid making credit card payments that are more than a month late.
As your last option, you can
ACQUIRE NEW CREDIT. This will apply especially if you have lost all your cards due to debts. However try to use the ones in your possession responsibly as this can show that you are capable of making a financial turnaround and will go towards boosting your score. However applying for new credit is also challenging and you are advised to move slowly and be carefully not to make the decisions that landed you in the current mess in the first place