You will have a lot of trouble and stress because of your bad credit, but it's not the end. Bad credit won't last forever, even if things seem hopeless. There are several things you can do right now to improve your credit.
- Don't use your credit cards any more.
If you already have bad credit, one of the worst things you can do is keep using your credit cards and racking up more debt. Don't buy anything if you can't pay for it in cash.
- Get a copy of the report on your credit.
Get a copy of the report on your credit. You can find out how to get your free copies by going to http://www.annualcreditreport.com.
- Correct any errors in your credit report.
Contact all three credit reporting agencies to fix any mistakes they may have made. If you think something is wrong or out of the ordinary, you should say so. Keep an eye out for negative comments that aren't about you.
- Pay any bills that are past due.
Your credit score will go up a lot if you pay any bills that are past due.
The way you've paid your bills in the past makes up 35% of your credit score.
- Stop filling out those annoying credit applications.
Don't fill out any more credit card or loan applications while you're trying to improve your credit score. More applications will hurt your credit score, and if it's already bad, you're more likely to be turned down anyway.
- Don't close old accounts too quickly.
Close any credit cards you have for gas or stores, but don't rush to close your main credit cards like Visa or Mastercard. Paying off the balances will help your credit score, but closing the cards will reduce your available credit and hurt your score. The longer the account has been open, the more it helps your score.
- Get out of debt.
Do whatever you have to, but get out of debt. You might have to give up some freedom and get a second job to do this, but you have to pay off that debt. In the long run, you will be glad you worked to improve your credit.
- Give your creditors a call.
Talk to your creditors about your situation. They may be the last people you want to talk to right now, but they may be able to help. If you can, try to get your monthly payments lowered for a short time.
