| "How can I fix my credit?" is usually the question that | | | | agreements in writing, which is a great means of |
| comes to mind when you are being turned down for a | | | | defense against lost records, changed minds, new |
| loan, home mortgage or insurance that you | | | | management and other things. After paying off your |
| desperately need. | | | | debt, make sure to get a settlement letter and send a |
| However, it could be that you are confused about the | | | | copy to the credit bureau to update your report. |
| details on how to fix your credit and performing credit | | | | 6. Refrain from using too many credit cards and stop |
| repair. | | | | charging. Furthermore, you should also keep paying at |
| Here are several steps that you can take in order to | | | | least a minimum on everything and you will eventually |
| repair or rebuild your credit. | | | | get them all paid off. Keep only one card available try |
| 1. Make sure that you know what is in your credit | | | | to use it infrequently. |
| report by getting a copy of your report from the three | | | | 7. Make on time payments as much as possible. Never |
| credit agencies every year. Review these reports for | | | | arrange a for a lowered settlement account that you |
| accuracy and determine if there are erroneous entries | | | | cannot follow since this could only negatively affect |
| that led to a poor credit score. | | | | your credit. Remember that payment history is the |
| 2. Contact your creditors the moment you realize that | | | | number one factor in your credit score. |
| you will not be able to make the payments on time. | | | | 8. Close one or two accounts every six months or |
| This helps in working out a schedule of smaller | | | | more. When you have decided which accounts you |
| payments to fit your budget. Be honest about what | | | | have to keep open, make sure to keep the one or |
| you can and cannot afford. | | | | two oldest accounts, which comprises the third biggest |
| 3. Make a budget of your income and your expenses | | | | factors in your credit score-the length of your credit |
| every month. Determine how much money goes to | | | | history. Having five accounts with zero balances on |
| leisure activities and eating out and then figure out how | | | | the four and $500 on one account could lower your |
| much you can set aside every month to carve down | | | | credit risk compared to a having two accounts with a |
| your debt. | | | | $250 balance for each account. |
| 4. After determining how much you can pay for your | | | | Keep in mind that living with a bad credit can be very |
| debts, make sure to pay them on time every month | | | | stressful, thus, you should take all necessary measures |
| and pay extra on the lowest outstanding balance that | | | | to minimize and keep your debts low. Take positive |
| you have. Keep in mind that total debt outstanding | | | | action and change your view towards money. The tips |
| comprises almost one third of your credit score. | | | | above could put you on your way to debt recovery |
| 5. After negotiating with your creditors, get all | | | | and fix your credit. |