Even though bad credit may feel like it’s the worst thing in the world to happen to you, it’s hardly the case. As much as you may feel hopeless without an end in sight to the endless cycle of interest, it’s possible to get out from underneath it with the right efforts.
Making a comeback from bad credit to good is as easy as putting the right tips to use. In no time you’ll find yourself proud of all of the work that you’ve accomplished to come out strong and debt free. Follow these tips to get you started.
Stop Applying For New Credit Cards
As long as you’re trying to build your credit score back up, you shouldn’t apply for more cards. Applying for new credit cards can hurt your score by a few points each time. On top of that, a new credit account additionally lowers your score.
In addition to lowering your score, it’s also getting yourself into potentially more debt which is how you got into this mess in the first place. You’re more likely to be approved for a credit card once your score is back up.
Pay Off Your Debt
One of the most important things to know about why your credit score is so low is that it depends on several factors, not just one. One of the most important being how much you are in debt currently. The amount of debt you have accounted for a vast majority of your total score, so the sooner you start to pay it off, the faster your score will rise.
If you’re ready to make it happen quickly, try to come up with creative ways to raise money to pay off your debts. You can sell your old items by having a garage sale or even take on a part-time job. The more you want to pay off your debt, the harder you’ll be willing to work.
Pay On Time
Your payment history plays a significant role in your score because it shows how reliable you are. The farther behind you are on payments, the more it hits your credit score.
If you fail to pay within a certain amount of time, your bills will be sent to collections, and it will hurt your score even more.
If you miss payments frequently due to forgetting, then sign up for automatic payments. That way it comes straight out of your account every month on the same day without you having to do a thing.
Monitor Your Credit Score
Once you start putting all of the right actions into motion, it’s time to watch your progress. Signing up for a credit monitoring service ensures that you’ll keep your eye on anything that comes up from late payments to improvements on your score.
The only way you’ll be sure that your score is growing is by keeping a watch on it.