How to Fix Your Credit Fast
Credit Scores (Photo credit: i am real estate photographer)
The best time to start repairing your credit is as soon as possible. A credit score can go down as a result of bad spending habits, and your financial future depends on your ability to reverse them. Adopting new ways of managing money is the best place to start, but it takes time for good results to improve a credit score. A score of 650 may seem fairly high, but it needs immediate attention to keep from going lower. Scores that are under 650 may indicate the need for assistance, especially as they move into the 500 range or lower. The Federal Trade Commission provides recommendations on their website for ways to improve credit scores, including setting realistic budgeting goals and getting a free copy of your credit report.
A Project Worth Pursuing
You may have experienced getting turned down for a credit card application, and that is an embarrassing event that no one wants to endure. The impact of a bad credit rating or score extends into many areas of your life that you may not even realize. The interest on your credit cards is affected by it as well as your ability to get automobile insurance — even the amount of your insurance premium can be governed by your score. It is definitely worth the effort to repair your credit, and it is never too late to start.
How to Start
Make a promise to yourself to respond to each credit card bill. You can get a start on repairing your credit standing by making a plan that is achievable. Some experts recommend paying the accounts that have the highest interest rates. When you review your debt situation, it may seem overwhelming at first. In reality, the solution is a simple one: stop spending and start paying.
You may take the advice of some financial advisors and cut up your cards so that you are not tempted to use them. If you do so, your balances can increase only by interest fees but not from new purchases. In any event, pay the minimum amount or more on each credit account on time each month.
Credit Counseling May Help
Curbing the tendency to buy something is a large part of the challenge that you face. Try to limit your spending to things that are necessities, such as groceries, rent, and utilities. When you shop, take only the amount of cash that you need to cover the essential purchases.
To make sure that you stick to your plan, you may need to get the help of a credit counseling company that has a good reputation. Under some arrangements, you may get a lower monthly payment that is easier to handle. There is no short cut to improving your credit score. Only the steady progress toward paying off your debts can improve your rating, and it continues to get worse until you take initiative to reverse the downward trend.
Keep Your Spirits Up
Discouragement is the enemy of accomplishment, so keep in mind that your efforts to stop spending can eventually reap the benefits that you seek. Make at least a minimum payment on each account every month and expect to see improvement in your credit score. Ralph Waldo Emerson offered advice for anyone attempting a difficult task when he said that “nothing great was ever achieved without enthusiasm.” Keeping a positive attitude and a belief that you can succeed if you stick to a budgeting plan can lift your burden of indebtedness.
Kit Norman is an ardent finance buff, and gets many of her smart money tips from credit repair sites and investment blogs.
Category: Credit Card
