BAD CREDIT REPAIR
Are you ready to start the credit repair process and change your bad credit rating into a good credit rating? The following steps are all a must for repairing your bad credit.
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Open a savings account and add to it every payday. The best way to do this is to pay yourself first. Put at least 10% of every paycheck into savings. Even if this means having to eat spaghetti five nights a week. A savings account will show potential lenders that you have the discipline necessary to save money and are not living paycheck to paycheck. This will also raise your credit score. Besides, what were you planning to retire on? Social Security? Good luck.
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Develop a budget and stick to it. You have to know exactly where all your money is going. Keep a daily record, to the penny, of the money you spend and what you spend it on. In doing so you will be able to identify bad spending habits and find areas in which you can save your money. A dollar here and a dollar there adds up quickly and can be a considerable amount on a monthly basis. Often more than enough to meet your 10% savings goal.
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Start establishing positive credit references. Get no more than two credit cards. But that's what got me into trouble before, you say? Wrong! Your bad spending habits got you into trouble, not the cards. Use your new cards to purchase necessities only, groceries, gas, etc. and pay off your balance, in full ten, days before the due date. Do not use your cards to buy a round of drinks for your buddies or to buy that cute pair of shoes that you just have to have. If you can't get an unsecured card put up the deposit and get a secured card. You have to start someplace.
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Review your credit report every six months from all three credit reporting agencies. All the sacrifice and discipline you have endured in your bad credit repair efforts will be for naught if your progress is not accurately reflected in your credit report. Any errors or inaccuracies must be disputed immediately. The longer you wait to correct your report the more tedious and difficult it will be to correct.
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Don't job hop. Frequent job changes indicates a lack of commitment and an unstable income stream. Your employment history is also a major factor in your credit score. If a job change becomes absolutely necessary make sure you stay in the same field or line of work.
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Maintain a stable residence. Enter into a lease agreement if you are a renter and make sure the utilities are also in your name. There is an old saying in the car business: "No phone, no loan".
- Be prepared to pay higher interest rates on loans you do get approved for. Don't cop an attitude with potential lenders. It was you, not them, that got into this situation. Your goal here is to get the loan and establish another positive credit reference. Over time the interest you are charged will come down provided you continue to improve your credit rating.
Credit repair will take time. Especially after any major credit damage such as a bankruptcy or repossession. The worse your credit is, the longer it will take to repair. But it can be repaired. For most of you this will require some lifestyle changes and dropping the bad habits that ruined your credit in the first place. But , if you have the desire, the self discipline and the right attitude your bad credit can be repaired.
Understanding Your Personal Credit Report
The True Cost of Bad Credit Loans