How to Beat Bad Credit
Having bad credit is not only an inconvenience but it's a major financial problem you need to take care of as soon as you can. No matter what the reason behind the poor credit rating, the right thing to do is develop an extensive plan to boost it from bad to good. To help you do just that, here are some tried and tested ways to beat bad credit:
- Check your credit report
- Pay your bills on time
- Reduce your debt
One of the first things you need to do is check your credit report. While credit agencies rarely make mistakes, it can still happen. Cover all your bases by checking your credit report for inaccuracies or errors. You will then need to report these errors so they can fix it as soon as possible. You can obtain your free credit report at http://www.experian.com/assistance/free-annual-credit-report.html.
One of the main elements used to calculate your credit score is payment history. In fact, it comprises 35% of your score. If you want to beat bad credit, you need to commit to paying your bills on time and consistently. This includes credit card bills and utility bills as well as loan payments and installments. To make it easier to pay your bills, you can set-up calendar reminders or automatic debit deductions for fixed fees.
The total amount of credit owed is another key element when formulating your credit score. Other than paying your bills on time, you’d also want to reduce the total amount of debt you owe especially your credit card bills. To beat bad credit, you need to start paying off debts especially the ones with the highest interest first. While you’re at it, you’d also want to lessen the frequency of using your credit cards. Reduce your charges so it’s easier to pay credit card bills in full by the end of your billing period.