Easy Ways To Fix Your Credit Rating

Whether looking to buy a new home, refinance the one have now or even if looking to buy that new car; looking for a loan with bad credit can be downright frustrating.So, before beginning the search take a few months and work on repairing your credit score and report.Here are a few steps that you can take to fix your credit BEFORE looking for that new loan:

1. Begin by getting a copy of your current credit report and scores.You won't know what needs fixing without it.
2. Once you have a copy of your credit report look at each item and determine if it is being reported correctly or incorrectly.
3. Contact any lender or creditor that is reporting inaccurate information directly and ask that they update the information.Also, contact the credit bureaus to let them know what information that you are disputing.
4. If you aren't already, start paying your bills on time.Make this the highest priority you have.Work out a budget that is based on your income and which bills are due when.Create a calendar or an order that you every time you get paid and pay those bills first.
5. If you cannot afford all of the minimum payments on your loans currently, than you need to work with a bank or other loan officer to see if you can consolidate those expenses.
6. If you are behind on payments, contact each vendor and work with them directly to find out if they offer options of variance or deferment.Getting an approval to have missed payments skipped and start being on time will not eliminate the amount you owe, but it will stop showing that you are continually running 30, 60, or 90 days behind on your credit report.Do whatever you can to get all of your bills current and keep them that way.
7. If you are not behind on payments, look at your balances.Credit bureaus look at the credit limits vs. the available balances on each of your credit cards.If they see that you have lots of credit cards with very little available funds your credit score will be lower.If you can work on reducing the amount of debt on each credit card.
8. If you have the funds available, pay off some of the debt you have.Paying things off does help boost your credit score.However, the key is not to immediately close accounts you have paid off.An open credit card with a zero balance could help improve the score in the short term.
9. Don't open any new accounts.If you are working to improve your credit for an important purchase; do not go out and get new accounts now.The older the account age on your credit report the better your score.If you are opening new accounts that could actually be a red flag to lenders.
10. The final key to "fixing" your credit report is about maintaining good credit.If you act responsibly from this point your credit score will naturally come up even on its own.

Though having credit trouble is disheartening, know that it can be temporary.The most important thing to do is try to get on top of the loans, credit cards, and other revolving payments you do have.If you are on time, working consistently to pay down balances, and not continuing to use or acquire new credit; your credit score will become a reflection of those new changes.Credit scores can begin to change within a few months, but most take up to a year to show a significant difference.The key, be patient and be consistent from here on out.