Four Tips For Fixing Your Credit Now

 

Why is bad credit so bad? Well, if you have bad credit you may never be able to own your own home, you may not even be able to rent an apartment. Your credit will be a determining factor for landlords when it comes to making a decision whether or not you are going to pay rent on time, and on a regular basis.

If you have bad credit you should start working on fixing it as soon as possible. Maybe you have a vehicle already, but what happens if it breaks down? If you have bad credit your options for replacing your vehicle without cash upfront could be extremely limited.

credit card

Get Your Bills Paid Off

Start out by getting all of your bills paid off, whether they are late or not. Even your electric bill, if it’s late and gaining interest, can affect your credit. Any open accounts do this as well, whether it’s a store credit card or a payday loan.

Don’t buy things that you don’t have the money to pay for. Things like payday loans can quickly get you into debt with their high interest rates.

Don’t Frivolously Use Your Credit Cards

Credit cards should seriously only be used for emergencies or when you have the money to pay them off already but simply want to use them to build good credit. In fact, credit cards can be a good thing, since having no credit at all can cause you almost as many problems as having bad credit does.

Credit cards are not free cash. It’s money you need to pay back. If you spend a bunch and only pay back the lowest amount due each month you’re continually spending with that card as the interest rate racks up. The more you owe the more the rate adds to your bill.

Pay Attention To Interest Rates

Speaking of interest rates, you might be able to negotiate a better one with the cards you’ve had for some time. When you are looking to get new credit cards it is useful to do some shopping around in order to get the best rates.

Build A Savings Account

If you have a good amount of money in a savings account it can save you a lot of trouble when it comes to your credit. You need some sort of backup plan in case of job loss, emergency , or injuries. Having a good six months worth of income put into savings can really help you stay ahead of bills no matter the situation.

Once you’ve straightened your credit out you should reevaluate your spending to keep from going into debt again. Learn how to save, and how to spend more wisely.

Posted in: Credit

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