Look through your financial report over the last couple of years, a revelation of things you don’t like remembering and low credit score will emerge. Just like 77% Americans with credit issues, you definitely aren’t alone! The credit score most individuals have for themselves has been lingering since the period of the global financial meltdown and recession. Your credit score will be a justification of the possibility of getting credit and the rate you will be offered. The worst of it all is a shocker you don’t like to know; your insurance premium and employability will be hampered by your credit rating. No need crying foul over spilled milk. What you need to do is to chart your way out of the credit zone.
You will probably say in your mind right now that it’s “easier said than done”. All hope is not lost nonetheless. This is the perfect time to follow Fresh Start Credit Repair principles to a better credit score which we refer to as the 3R’s. You will need to carry out a:
1. Repair on your credit,
2. Rebuild the damage and
3. Restructure your spending for the future.
Careful adherence to these principle will take you out of a “possible” bankruptcy to a clean state of financial health.
Your credit is damaged already. Just imagine what happens if you build on defects or damaged building. Start the repair by looking out for errors in your statement. You must have certainly made series of mistakes, but it will be unfair to pay for the mistake of someone else. You should work out a payment plan if you are having issues with meeting up with your payment obligations. Another way to repair your credit score is by contacting your credit companies if they can remove records of late payments. Consider the payment of your bills straight from your checking account by a direct allotment.
You can only have a positive credit record with credit seasoning. Simply put, you build a good credit with established credit or credit that has been in good standing for at least 6 months. Enquire at your bank if you will be allowed to open a secure credit card account. With this, you will able to deposit the amount of the limit in an account. After few month of timely payment, you can move to an unsecured card. Start with departmental store cards, they are easy to get. Within 6-12 month of regular and on time payment, you should apply for a regular bank credit card. At this point, you should have a better credit score.
Any mistake will take you back into the dark pit of debt. Since you must have a positive payment record, clear off a sizeable portion of your credit card immediately (under 25%) and do not close down that account. For sake of emphasis, do not ever close down settled accounts, especially those you’ve been running over a long time. At this point, avoid any inquiry for new credit. This will throw your credit rating off-balance. Remember if you get it wrong here, you will have to start all over.
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