Cory Buford

Having a bad credit rating has many negative effects, such as higher interest rates on credit cards and loans, getting rejected for credit and loan applications, difficulty in getting apartment and cellphone contracts, and greater chances of being denied for job applications. There is no easy way to fix a bad credit report, but you can always do something to prevent these things from happening to you. This article will discuss ways you can improve your credit score.

Examine Your Credit History

You need to know how bad your credit score is before you can start improving it; hence, it's helpful to get a copy of your credit history. Credit bureaus like Equifax, TransUnion, and Experian compile the credit histories of borrowers in the U.S. These bureaus are not government-owned but are operating according to the federal Fair Credit Reporting Act so they're sanctioned and do not gather information on their own.

When you have your credit history, check if there are late payments mistakenly recorded. It is important to check if correct amounts are recorded and if you find any mistakes, you can dispute these with the corresponding bureau. You can also check your previous creditors if there are errors but do it politely and avoid being rude. The best way to do it is to send a letter to the bureau for any dispute.

Set Up Payment Reminders

Payment reminders, which you receive on your cellphones or through email, can help remind you of your financial obligations. Banks offer this kind of reminder to their customers to prevent them from missing payments. Another way to be reminded of your financial obligations is to enroll in an automatic payment system. However, this will only work if your problem is simply forgetting when to pay your bills and may not work if your problem is overspending. This can be prevented by creating a budget that will meet your needs and your obligations.

Keep in mind that more money will not solve your money troubles if cash flow is your problem. If you can’t learn to live within your means then you must expand your means. A good first step in this direction would be to look for a job with a higher wage.

Use Credit Cards Rarely

Credit cards have both advantages and disadvantages, but knowing the latter is essential. Credit cards are considered spending temptations by many cardholders and may tempt you to spend more. When you are using your card, you feel like you’re spending without taking any cash from your pocket. You only receive a monthly bill and failure to pay the amount due can lead you to higher debts.

To prevent getting a bad credit score, you need to minimize the use of the card. Continuing to pay your bills using credit cards will make your debt grow, so pay your bills with cash. Perhaps you can borrow money from your family or friends. You can make cash advances, too, to start paying down your debts with higher interest rates.

These are just some of the effective ways to improve your bad credit in time. The sooner you take these actions, the sooner your score will improve.

Cory Buford is a Virtual Realty Consultant and CEO of GateWay Marketing Online. If you’d like to learn how to increase visibility, establish credibility, and achieve profitability for yourself, your business, or your organization with passive, residual income from eBooks, memberships, podcasts, software, webinars and much more, then their unique holistic approach helps you to build relationships, grow with stability, and profit much faster!

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