If you fear you might have bad credit it can understandably make you want to bury your head in the sand; but similar to getting a medical check-up, whilst nerve-racking, it tends to be much better to know where you stand, so that you are in the empowered position to nip any issues in the bud rather than let them spiral out of control.
Repairing your credit rating is a journey that can take some time; however, it’s entirely possible for anyone to turn their credit rating around; even if you have previously been bankrupt, or are soon to be discharged. Similarly, it’s not just individuals that need to be mindful of their credit scores; companies must protect and nurture their credit score as one of their most treasured assets.
Indeed, credit ratings, just like customer service ratings are often publicly available online. With that in mind, there are two fundamental principles you must follow when looking to repair your credit status: first, find out where you are and then find a way to repair any damage that has been caused and start getting back on track.
- WHERE ARE THINGS NOW
The first step is to check your credit report, and if your score is less than desirable then you are in the empowered position to take immediate action to start repairing your credit score. The first thing is to check for errors; some credit reports contain many errors due to simple administrative error or complex issues such as identity fraud; be sure to check there are no late payments incorrectly listed for any accounts and dispute any errors you do find with the credit bureau.
- GET BACK ON TRACK
If you have missed payments, then stop worrying about this – the damage is done – all you have control over is the current moment which will directly affect what happens next; and the best thing you can do moving forward is to ensure your bills are paid on time. Sometimes, borrowing money can be a justifiable and viable way to consolidate your debts and get back on track
The trick is to get back on track by getting up to date with your bills, even if that involves negotiating payment terms so that no further damage is done to your credit file – and then stay on track. If you have a few red crosses, then the remedy to that is to create many more green ticks; there is no remedy in burying your head and letting things spiral no matter how tempting it may feel.
It’s important to be mindful of the steps you need to take before borrowing, but one of the most important steps in rebuilding your credit history is actually getting credit. There are many financial products available such as credit cards to rebuild credit for people that have a poor credit score who are looking to improve their financial position. These credit cards often charge a reasonably high rate of interest but they are a great way to help rebuild your credit and presuming you pay off the balance each month, they are a worthwhile investment in repairing your credit.