7 Ways To Improve Poor Credit

Living with a rocky credit score is something no one wants. As you may have already noticed, there are many things out of reach when you need to improve poor credit. The good news is that there are ways to improve your credit. You don’t have to suffer for months or years with a low rating that affects your ability to live your life the way you want. Improving your credit could even help you get a mortgage or business loan. So, what can you do? Let’s look at some viable options for poor credit, some strategies to help change it, and how to navigate it all. 

Check Your Report for Errors

If you want to improve poor credit, check your credit report for any errors. Mistakes happen more than most people believe they do. If you need to improve poor credit further, getting a credit report errors lawyer might be the best option. Even small errors, like a wrong street address or an incorrect borrowing amount can cause reporting problems. These can detract significantly from your overall score and prevent you from getting the rates of loans that you want. 

Lawyers will usually go to all the big credit reporting companies, like TransUnion, Experian and others. They will ensure that they all have the correct information about you and that they are reporting on you fairly. Sometimes, they are fed the wrong information by someone that has stolen one of your cards or is using your identity fraudulently. 

Identify the Cause of a Credit Decline

Next, investigate what could have caused your credit score to drop rapidly. The reasons for this can be many, so always explore what might have gone wrong. Remember, scores can go down for all many reasons, including: 

• High credit card balances being held at high interest rates
• New collection accounts
• Checking your score regularly
• Someone else taking out credit in your name
• Inaccuracies in your credit reporting or simply typos

Decrease Credit Card Balances

If you don’t discover any errors, it is still a good idea to decrease credit card balances. Try to cut down your total borrowing to around 30% of your overall limit. Credit rating agencies like to see a higher borrowing capacity. They also like consistent payments that exceed the minimum.

Set Payment Reminders

Setting payment reminders is a good idea for busy women if you need stick to a payment routine.  Catching up on late payments is relatively easy and something that you can do to bring up your score. By doing simple things, you may even see how simple it is to rescue poor credit.

Know that many creditors will negotiate a repayment plan. Getting in touch with them and telling them that you’re struggling financially can be a great way to make your financial situation more manageable. 

Consider a Secured Credit Card

Another option is to use a secured credit card. You back these with a cash deposit, so there’s less risk to the lender. You can also borrow at lower rates, which helps you rebuild your finances. 

Speak with Debt Collectors

You also want to speak to debt collectors about your case. Be honest but careful about what you say. Remember, they are trying to recover funds from you. The key here is to get a “pay for delete” agreement if you can make good on any money you owe them. You want to get this in writing after you pay them the required fee. They should then clean up your credit score. 

Seek Professional Help

Another option is to seek professional help. Going to services that help people repair their credscores can be highly effective. Professionals ensure that the rating agencies treat you. Their proposed plan should be a clear and straightforward process.

 The trick is to stay calm throughout this process and take a methodical approach to the tasks that can improve poor credit. It usually won’t happen overnight, but if you are consistent, you will eventually see significant improvements.