Hello, I’m going to get right to the point here, “you need credit help”. How do I know this? Because you have searched for ways increase your credit score. So with that out of the way let’s see what we can come up with in repairing bad credit history.

What is credit? Credit is money borrowed from Banks or a Credit Union so you can buy something that is priced more then what your budget allows for that month.

In order for the lending institute to loan you money you must have a good credit score.

Sometimes things in life happen that are beyond our control. This could be the loss of a job, divorce, reduced income or maybe even a personal tragedy. These events can be life altering and usually have an effect on your credit score. If your credit scores have declined, you need to look for ways to help rebuild your credit.

There are many things that affect your credit. The first and foremost reason for bad credit is your not paying your bills on time or not at all. Creditors report all late payments to the Credit Agencies who keep track of all payments that determines your credit score. So if you have too many unpaid bills your credit score will reflect this and your score will go down.

You have too much debt

When dealing with your credit score there is a fine line you must follow to keep good credit. Having too much debt is a sure fired way to lower your credit score. By the same token not enough credit can lower your credit score. The key is to know just how much debt you should carry. This figure is determined by your income and your ability to re-pay the debts.

Other factors that will cause you to have bad credit are, recently faced a major financial problem like bankruptcy or defaulting on a loan, been reported to a collection agency or you simply do not have credit.

These are all problems that you create and know that they are bad for your overall credit.

How to fix the bad credit

In order to fix anything you first must know what’s broken. With your credit this means you must get a copy of your credit report. You are entitled to one free credit report each year. There are three major credit reporting agencies.

1. Equifax Credit Information Services, Inc

2. Trans Union LLC Consumer Disclosure Center

3. Experian National Consumer Assistance Center

After you receive your reports look them over for improper enters such as accounts that don’t belong to you. Keep track of any mistakes you find. You can report these to the credit agency that reported the error. Also look to make sure your personal information is correct.

Step one

Look closely at your credit card debt, see which account is the oldest and which account is the newest. In some instances closing account may be necessary. If so only close the newest accounts first. You must pay them off in full first.

Leave the older accounts alone as long as you are current on the payments, they will establish credit worthiness that will help your credit score.

Step Two

Stop applying for credit. The more inquiries requesting credit you have can definitely affect your credit score.

Step Three

Now is a good time to re-check your family budget, see where you can save a few bucks here and there. Don’t rob from other debts as you will need to be current on all your bills.

Start paying off some of your credit cards. Start with the account with the lowest balance. Every month pay the regular payment on time plus the extra money you found in the budget. Do this until the account is paid in full.

Next move to the next lowest balanced account and apply the same method as before only this time you add the total payment of the paid off account to the new account you are paying off. Remember to add the regular payment along with the extra payment. Do this until the account is paid in full. Keep repeating this method until all your credit cards are paid off. You’ll be very surprised how much money you have left at the end of the month. You could take some of that money and apply it to mortgage accounts or other secured debt.

Step Four

Do not close any of the paid off accounts because this will harm your credit score. Also do not destroy the credit cards either, they will come handy later after your credit score has gone up to a good or very good rating. Now every now and then charge something on one of the credit cards, nothing big, just something you can easley pay off. Keep he account open for one month by paying the minimum amount asked for. The next month pay the whole account if full and put the credit card away. You can do this every once in a while just to show that you still have credit.

Now keep on paying all your bills on time and add a few dollars extra to the payments. In doing this you will avoid repairing bad credit history ever again.

I hope this has helped you in some way, thank you for reading this article.

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