Even if you’ve recently declared bankruptcy or are coming out of major debt, it’s never too late to begin repairing your credit score.
Repairing bad credit requires time and patience, but each step you take towards boosting your score will pay off in the long run. After you’ve resolved to leave your financial mistakes in the past, look to the following tips to repair your credit score once and for all.
Don’t cancel your credit cards. Cancelling a card can do more damage to your credit score than good. Instead, use your credit cards sparingly to start rebuilding your credit score. Spend a small, manageable amount using your card, and repay it in full before the month is over to start proving your trustworthiness to future lenders.
Don’t max out your credit limit. Keeping a low balance on your card will raise your credit score over time, so try to use less than 30% of your limit each month. If you need to make a large purchase, such as a plane ticket, repay what you can as soon as possible to bump your debt back down. Once you’ve established a routine of repaying your credit card on time, you can ask the bank for a raise in your credit limit.
Dispute inaccuracies. Sometimes credit reports contain errors! Make sure your credit report is accurate, and dispute any unfair accusations. Showing you care about your score and presenting your argument may result in a positive amendment to the report.
Try a secured credit card. If your bad credit score is keeping you from credit card approval, consider signing up for a secured credit card. Similar to a debit card, secured credit cards allow you to load money onto them, only they can help you begin rebuilding your score.
Work with a responsible lender to pay back a loan. If you can get a personal loan from a responsible lender, the repayment process will greatly help your credit score. This will likely involve offering up collateral, but the right lender will design a payback plan that fits your needs. At Speedy Finance, we understand that anyone can end up with bad credit and want to help you achieve your financial goals despite past credit score snafus.
Ready to leave bad credit in the past? Check out our blog for further financial tips and talk to our friendly team about the bad credit loan options available to you.