Terrible Credit And How To Deal With It

The time has come to invest the big money. The house in the perfect neighborhood, the first new car after years of driving old beaters, the mom-and-pop place in town that’s facing closure when Mom and Pop retire unless someone steps in to buy it.

And you are about to sign the paperwork. Except you can’t. Your terrible credit is a problem. With unpaid loans, overdue bills, and overdrawn accounts, no one will sell you what you want, or extend a line of credit without an exorbitant interest rate.

Long before you sit down at the final negotiations, you need to know where your credit stands, what needs repair, and how to keep your credit from backsliding into benign neglect. Here are seven steps to take control of terrible credit and turn it into a stellar score:

1. Know where you stand: Get your free credit report here and check it at least once a year. Look for signs of fraud or errors and contact the three nationwide credit reporting services to correct the information right away.
2. Work with a knowledgeable repair counselor: The Credit Care Company works legally and sensibly to repair your credit score by removing erroneous information from your history and developing a plan to reduce debt and spending.
3. Income, outgo, and the budget: Know what you have coming in each month, and know your expenses (daily, weekly, monthly, annual and occasional). Put a budget down on paper, a spreadsheet, or use budgeting software to see where your money goes.
4. Don’t hide from your history: If there are outstanding debts in your background, resolve them and get them removed from your report. Your credit history goes to banks, employers, insurers, and other businesses, and your credit history is your financial reputation.
5. A high spending limit isn’t a spending spree: Just because your credit card issuer raises your limits, don’t consider that permission to run up your balances. Chronic high balances on your credit report are a tip-off that you don’t control your spending.
6. Speaking of balances, pay them every month: And pay them in full, on time. This establishes good faith to the credit card companies that you are serious about using their card wisely.
7. Maintain and monitor your credit: After you clean up your credit, watch your spending and use of credit. Look at your credit card statements and make sure that the charges are yours and they are correct. When you decide to open another line of credit, shop around for a card that pays you in reward points or cash back and offers the best interest rate if you must carry a balance.

Terrible credit is not financially terminal; getting your credit back on track takes time and steady effort. Keeping your credit clear means avoiding debt and overspending and sensibly using the credit you have to pay for what you need. For more information on how to deal with terrible credit, contact The Credit Care Company today!