If you are having a bad credit, then you need to do a lot of hard work in order to fix it. It is important that you stay on top of your bad credit because it plays a significant role on your financial future. You will face a lot of troubles in obtaining any new credit from the future lenders. Here are some tips on how you can fix your bad credit over the period of time.

The first step that you need to take is to order a free copy of your credit report from the credit reporting agencies. You are eligible to receive one free copy of your credit report in a year. If you pull your credit report multiple times in a year, it will hurt your credit scores.

 

Next step is to review your credit report thoroughly. You want to make sure that there are no incorrect items reported on your credit report that are hurting your scores. If you find any errors, contact the credit reporting agency and dispute the incorrect item. Get it fixed immediately. Make sure that you are doing the disputing the error in writing in order to back your case. The credit bureau will review your dispute and correct it within thirty days.

Take a look at the loans and the credit card debts showing on your credit report. Close those accounts that you won’t need in the future because too many open accounts will hurt your credit scores. Transfer the credit card balance having a high interest rate to another card with a lower interest rate as this will save you some money in the long run. If there are any open accounts with small balances on your credit report, contact the creditor and get it paid off before you start working on the accounts with larger balances.

Contact the creditors with whom you have high balances and try to work out payment arrangements with them. They will be willing to work on your payment terms because they will understand your intentions of paying off your debts in order to fix your credit. Make sure that you get everything in writing before you agree to make any payments.

Repairing your bad credit will take some time, but this is something that you will want to do in order to get a good deal from the potential lenders when you are looking for any new credit in the future.

This entry was posted on Monday, February 23rd, 2009 at 6:08 pm and is filed under Bad Credit, Credit. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.