How to Fix Bad Credit: 5 Simple Ways

fixing bad credit

Keeping your credit history clean and in top shape should be your main priority, especially if you are fond of lending money, cars, and other properties from lenders. If you are unaware of your credit score, then head on to the Credit Simple website. They can provide your credit score for free, and in just a matter of 60 seconds.

There are a couple of reasons as to why your car loan, for example, can get rejected, so it’s best to know what causes it and how you can fix it.

Put Your Bills on Auto-Pay

This is especially useful if you pay a lot of bills weekly or monthly. If you are not a fan of writing your bills or debts down, then the best way to solve this is to set it up. Connect your bills payment to your credit or debit card, so when payday comes, the bill will be automatically deducted from your card. By doing this trick, you never have to worry about missing a payment again, or being penalized for forgetting to pay on time.

Double Check for Any Mistakes on Your Credit Score

Yes, it pays to double check your credit score, as not each one is perfect and can sometimes contain mistakes. Get your credit report from a reliable source, read through it, and identify the mistakes. If you have any questions, you can always send an email or chat with the company that you got your credit score from. This is an important step to fixing your credit score, as it can directly affect your chances of getting approved when applying for a loan. Check for mistakes on your personal details, defaults and judgments, old defaults and judgments, and incorrect details of credit history. If you find any errors or you suspect that there is something wrong with it, then go ahead and notify the credit reporting agency right away. List and explain it in complete details, and leave it to the agency. They will check, amend, and repair your credit report if they see any discrepancies on it.

Include Positive Information

Include things like how long you have been working for a company (the longer, the better), your marital status (if you are married, then mention it), how long you have been living in a house that you have bought, and so on. These things will help boost your credit score as this means that you can and have been paying for a house, and that you have the capability to commit to a long term job or payment. If you are married and your other half is working as well, then this indicates that you can split the payment with them, if ever you alone are not qualified to get a loan.

Opt for a Debt Consolidation Loan

Your credit report is made up of your previous debts and defaults that you have failed to meet. Having a lot of debt in your hands can make it difficult to keep track, which can lead to defaulting payments. As long as you haven’t incurred a negative credit report yet, then you can surely apply for a single debt consolidation loan. This means that you can consolidate all your debts into one, making it easier to pay and keep track of.

Start by Building a Good Credit Score

There is no better prevention that keeping your score in tiptop shape from the start. It does not have to be perfect, it just has to be good enough for lenders to trust you. Pay your bills on time, keep track of it, and show that you are responsible enough and that you can manage it.

Good luck!