If your credit score is causing you to loose sleep and you are unable to get a loan from anyone, then now is the time to learn how to fix your credit score. All lenders, especially those lending money for homes and cars, look at your credit rating when deciding if you are a risk they want to take. Credit card companies also will not issue cards to bad credit risks. That is why you need to take some steps to improve your credit rating before even considering applying for a loan or requesting a credit card.
The most important thing you can do is to come up with a budget so that you are living within your means. The best way to do this is to keep track of what you are spending in one month and then cut down where you can. Apply any extra money to pay down your credit card debt. Get a free copy of your credit report from Equifax, Experian or Trans Union each year. Review your credit report to make sure it is accurate and dispute any negative items that you don’t agree with. Contact your creditors directly as soon as you know that you can’t make a required payment. Most creditors would rather get small payments from you than get nothing at all. Get any agreements you make with them in writing.
Additional steps you can take to learn how to fix your credit score are to quit using your credit cards immediately and cut them up! Make at least the minimum payment on each card each month if at all possible. Close no more than two credit card accounts every six months and close your oldest accounts last. Pay off any debts that you can, starting by paying anything extra against the lowest outstanding balance. Try to obtain a secured credit card where you are required to deposit a certain dollar amount as collateral. Join your local credit union because you are more likely to be approved for a loan if you are a member. Always pay your agreed upon payments on time and as promised. Finally, avoid filing for bankruptcy if at all possible because it will show up on your credit report for 10 years.
