There are so many consumers who have fallen behind on credit card payments and other financial obligations it seems man_with_credit_cardno longer taboo to admit you have had some financial setbacks. In fact, getting help to control your debt is a popular topic these days as many consumers realize the seriousness of debt.
Every individual can be credit worthy again, not matter what happened in the past. Being credit worthy allows you the option to select from the best rates and terms for credit cards, loans, mortgages, and the like. Getting a boost to your credit score is even more important now than ever before because it takes a higher credit score, 730 +, to be deemed as having excellent credit. Rebuilding your credit on your own is not impossible if you follow some of these tips:
Pay Off Debt First
While it may seem enough to just pay down your balances, it is much better than you focus on paying off your balances. You can boost your credit score by having less debt and you will also be able to save more cash for your retirement and investing purposes. Focus on making more than the minimum payment on your balances and stick to your budget to prevent overspending which you work to pay off all that you owe.
Don’t Apply for New Credit
As you work to pay down your debt, do not seek any financing or additional credit cards. Having too much credit will be a sure-fire way to bring down your credit score instead of raising it up. Do not send out any applications for new credit cards until you are able to get the best deals and rates.
Check Your Credit History
When you are working to improve your credit score, it will certainly help to know what you are improving. Order a copy of your FICO score as well as your credit report from both of the credit reporting agencies, TransUnion and Equifax. Then take the time to go over each individual item and make sure it is accurate. If it is not, file a report immediately. The credit agencies will have to open an investigation and any thing they can not resolve, it will be removed from your credit report, thereby boosting your score. After 6 months paying off your debts and paying your bills on time, you should reorder the same reports and score and see how you have improved your credit worthiness.
If you want a financially secure future free of debt, you have to act now to get a head start on better money management and debt-free living. Your credit score will make a big difference in the amount you pay in interest for credit cards, mortgages, and any personal loans or financing.