Sunday, 13 March 2011 22:46
If you’re concerned about your ability to receive credit, or if you already know that you have problems with your credit, there are steps you can take to improve your credit worthiness.
Get an Accurate Picture
The first step is to see how creditors are viewing your credit, and the best way to do that is to get copies of your current credit reports. Once you receive the reports, review them to make sure all of the information is accurate. If you find errors (such as credit cards you don’t have or a debt that appears to be unpaid even though you’ve paid in full), follow the instructions that come with the report to correct the error.
Take Control of Your Finances
Once you have an accurate picture of your situation, develop a budget to ensure that you’re not spending more money than you have. You may have to give up or cut back on some things (such as eating out or going to the movies), but you’ll gradually be able to improve your situation. Most people do not get into credit problems overnight, and it takes a while to recover from them, too.
Repay What You Owe
While it can be a challenge to dig your way out of debt, creditors understand that people can get into tight spots. If someone who owes money works with the creditor to pay it off, the creditor will view that person far more favorably than someone who stops paying and hopes the debt will go away, or declares bankruptcy in the hopes that the creditor will write it off.
Don’t Get Deeper In Debt
If your finances are headed in the right direction, don’t make them worse by digging yourself deeper into debt. Now is probably not the right time to buy an expensive new car, add to your wardrobe, take a cruise, or buy a big-screen TV. Be sure to avoid impulse purchases that give you brief moments of satisfaction and long years of credit payments.