If you have a history of poor credit or even if you think that you might, it’s important that you check and take the steps to improve it. It will take some time but with discipline, you may expect to see improvement in as little as 6 months to one year. You’ll have to prove that you’ve changed your habits, that you consistently pay your creditors on time and that you can effectively pay down your debt. Here’s the simple plan to help you improve your credit:
Know what’s on your credit report and resolve any negative issues or discrepancies.
Even if you believe you have a good credit score, it is still smart to check. Contact the credit reporting agencies and make sure they have the same record listing as you do. Make sure there are no inaccuracies, misspellings, incorrect names and addresses, or other errors.
Pay your bills on time.
Get control of your spending. Learn to budget and save whenever possible. Contact your creditors to discuss any bills you may be late in paying and catch up. Plan to always pay your bills when they are due, and allow enough time when mailing payments so they arrive before the due date.
Stop using credit cards now.
Pay down your credit card balances. As your debt gets lower credit card companies become more negotiable when it comes to interest rates. When you pay off credit card debt it becomes easier to budget for other bills and necessities.
Don’t spend more than you earn.
Make paying your bills and buying only essential items your main priority. Think carefully about the importance of all new purchases and weigh this against the greater importance of reestablishing your good credit.
Learning to control your spending, paying bills on time, and paying off credit card debt takes a long-term commitment and lots of self-control. It won’t always be easy, but the effort will pay off when you see your credit score improving.