Nothing hurts your future goals and aspirations more than bad credit.
The truth is that 40% of people who request credit for a car loan or other financial obligations face a lot of difficulty and red tape in order to get it.
So don’t do that to yourself. Check out these top five tips for repairing your credit, and never face a financial rejection again.
Payment reminders are your friend.
Since making credit payments on time is one of the biggest contributors to the health of your credit score, putting reminders in place will prevent you from shooting yourself in the foot and ensure your payments are submitted on time.
Check with your bank if they offer payment reminders through their online portals, and sign up for an email or text message that’ll keep reminding you when you have a payment due. You can also enroll in automatic payments through your loan providers or on your credit card, which will automatically deduct the minimum payment on your credit cards.
However, if you want to ace that credit score test, set the automatic payments for the whole amount due instead of just the minimum payment.
Okay, we’ll admit that going for paying the whole amount due might be a bit advanced if you’re just starting your perfect-credit-score operation.
So start slow and pay off as much debt as you can handle.
In order to figure out how much debt payment you can handle, you’re going to have to break out some spreadsheets (or pens, we don’t judge).
Go through your credit reports, make a list of all your accounts, and include how much debt you accumulated on each one as well as the interest rates they’re charging you.
Set up a payment schedule that will cross off the most financially painful debts— those are the ones with the highest rates—and pay the minimum payments for the other accounts.
Your payment history isn’t going anywhere.
While past misdeeds like missed or late payments aren’t easily fixed, there are ways to ensure that history doesn’t repeat itself:
Payment history can be a bit hard to manage, however, cleaning up your amounts owed is straightforward and contributes up to 30% to your FICO Score.
New credit can help you boost your credit score if used correctly.
We sure hope so!
Now that you have these top five tips for repairing your credit, you’re good to go and conquer all bad credit.