Improving Your Credit
A bad credit score can be repaired. It just takes time. You can start today by resolving to make your payments on time from now on. Just making the minimum payment is better than not paying anything at all, or even paying a bit more but after the due date.
1. There is no such thing as a "low priority" payment. Your phone or utility bill is just as important as your credit card payment—they'll both report a missed payment, resulting in another mark on your credit report. That goes for child support, bankruptcy filings, or any other payment you are legally obligated to make. Don't let them slip by unpaid!
2. Make sure not to use up all your credit. Unused credit is a good thing on your credit report, and can help raise your score. Just because you can charge more money on your credit card doesn't mean you should. Especially if you can't pay it off! It's also important to have some extra credit so you can handle any financial emergencies.
3. Keep your card accounts open, even if you pay a card off in full. This can help reduce your debt-to-credit ratio. It can also help you to maintain a relationship with your lender and possibly qualify you for better credit terms with that lender. Your credit score takes into account the length of time your accounts have been open. You want to show a long history of borrowing and paying back money reliably.
4. You may get a lot of credit card applications in the mail. Don't apply for them all just because you can. When your credit report shows that you have applied for many loans or credit cards at once, it can appear like you're struggling for money, needing more credit to make ends meet. And that's certainly not a person a lender wants to loan money to!
5. Protect your credit score. Check your credit every year to make sure there are no mistakes. Keep your account information private so that no one else can access your credit card number, social security number, or any other information that could damage the credit score you have worked so hard to build!
