It is important to peek into your credit report and find what it says about you. A new law in the US allows you the right to get one free credit report each year. Read the report to learn first hand what needs to be fixed. Infact you can request one free report from each of the three major bureaus.
2. Initial steps to fixing bad credit.
Learn why lenders consider you a risky candidate. I have outlined the most common ones.
Errors jumping out at you on your credit report.
These are the easiest of bad credit problems to be fixed. If you find any information which is not true like a payment showing missed when you made it or charges you never took, write as soon as possible to the reporting bureau for correction. Fix every single item that is erroneous in the report.
Missed/Late payments.
If any of the payments were made due to circumstances beyond your control and since then you have regularly been making payments, bring it to the immediate notice of the credit bureau. They will amend your credit file to reflect the changes.
High debt/credit ratio.
If you think you have maxed out of any of your credit cards, make it a priority to pay down and get to manageable levels as soon as possible.
3. Maintain your new earned credit once you fix bad credit.
Once you set the ball rolling on fixing, it is very important to maintain it. Make your payments without falling back on any of them. At times, communication is the key. Communicate, so your creditors are aware about your position and the attempts you have been making to pay off your debt.
