Poor Credit: How To Bounce Back
If you have a low credit score, then you already know how hard it can be to qualify for simple things such as a credit card, much less more complicated loans such as an auto loan or mortgage. For many people, bad credit can affect nearly every aspect of their lives, from how much they pay for car insurance to if they’re able to get a job. Fortunately, there are ways to get your good credit back. Follow these tips to get your credit score moving in the right direction.
- Pay your bills on time. It may seem like a relatively small thing to do, but every late payment (even those to utility companies) can take ten points or more off of your credit score. On the other hand, making on time payments gives you a clean credit history. Many people report their scores going up fifty points or more after six months or more of making on time payments.
- Pay off your revolving debt. A big part of your credit score is the ratio between the amount of debt you have and the amount of credit that has been extended to you. That means that if you carry a high balance on your credit cards, your credit score will drop. The more you pay off, the better your credit score will get. As your score improves, you may also want to consider asking your credit card company to raise your credit limit.
- Wait. If everything else fails, then you might just have to wait for the bad events to fall off of your credit reports. Every six months the mistakes you made in the past count against you less, until they eventually stop counting. Usually, that takes between three and seven years. Use sites like credit agricole, credit karma, or credit one to track your credit score and see if some of those past mistakes start to fall off of your record.