Really Simple Steps for Improving Your Credit
Is your credit rating low? Are you ready to start repairing the damage you’ve done?
Then follow these simple, logical steps:
1. Stop using your credit cards! That’s right: go cold turkey. You need to pay off the debt you’ve racked up without accruing any more. This first step might be painful if you’re very credit card-dependent, but it’s the only way you can start to improve your credit rating.
2. Cancel some of your credit cards! If you’ve got a large collection of them (say, over 10) then definitely get rid of some. That means cutting them up, canceling them in writing, and then badgering the credit card companies until you receive a written confirmation that each account has indeed been closed.
3. Pay your bills on time! Creditors aren’t impressed when your check arrives a week or two late. In fact, a late payment is often grounds for canceling any special offers you might have been benefiting from (like a low APR). If you have a problem paying bills on time, try scheduling automatic payments on-line.
Source: The Journal-Standard
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2 Responses to “Really Simple Steps for Improving Your Credit”
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Doesn’t cacnelling credit card actually hurt your credit, since it can raise your overall debt to income ratio?
Cancelling the credit cards doesn’t help. Lenders like to see that you have revolving credit. So if you do have a credit card use it wisely and don’t buy what you can’t pay for. When they see that you have payed for all of your debts they are more likely to give you a loan. So credit cards are a good idea if you don’t overspend. My experience is up until two years ago I had extremely bad credit. I disputed something that wasn’t supposed to be on there and it got removed. I also got a loan for a new car and have made payments on time never missed a payment. And now I have improved my credit dramatically. So all it takes is a little spending wisely and a little bit of revolvig credit