Many millions of
people in America
When a person has
a bad credit rating it is more difficult to receive favorable terms on
insurance coverage. It makes it more difficult to obtain the apartment of your
choice because many landlords look at the credit rating of a potential tenant.
Employers will
look at the credit score of a potential employee and make employment decisions
based on that. There are ways to raise your credit score and bring it back up
to the desired level.
One of those ways
is to obtain a personal loan and then pay that off regularly. If you are
looking for help with a bad credit loan check out moneysupermarket.com.
The loan should
only be for a small amount and the payments should be made every month until
the loan is paid off. You do not even have to use the loan to buy anything. It
is simply for the purpose of increasing your credit score.
Another way to
raise credit scores is to take care of all debts that you have and begin a
systematic monthly repayment plan. This shows that you are making an effort to
pay off your debts.
This means not
purchasing any more items on a credit card until the majority of the balance
has been paid off. It would be best to pay more than the minimum payment
required so that debt is paid off more quickly.
There is a catch
in trying to better your credit scores while still in debt. That catch is that
you must use credit in order to be able to raise your credit score.
Since you are not
going to put any more debt on the credit card you already have, you should
obtain another credit card. This card is only to be used to establish a better
credit rating.
This means that
you will make only small purchases on this card and then pay the balance
immediately. There should not be any debit carried on this card for any length
of time because that would only defeat the purpose. You must be disciplined
with this.
Make sure that
all monthly phone and electricity bills are promptly paid. If there is anything
owing, make sure this is taken care of as soon as possible.
If there is a
dispute about a bill or you have fallen severely into arrears, do everything
you can to avoid it from going to collection. Having bills that you owe turned
over to collections is a big strike against you. Try to avoid this at all
costs.
Check your credit
reports regularly. The reports can be obtained for free from government run
websites. It is important to look at your credit reports on an annual basis to
make sure that all the information is correct and that there is nothing added
or removed that could hurt your credit score.
You will want to
make sure that all debt that has been paid is removed from the report and you
have a clean record. You will also want to make sure that accounts that belong
to others are not placed on your credit report by mistake.
Following these
suggestions can help increase your credit score substantially. This may not
happen overnight but it will gradually go up if the repayment plan is persisted
with.
