Bad debt is stressful and burdensome. Several quick steps can be taken to improve bad credit to the point where you can start to improve your credit. Take your time in beginning the steps because you do not want to make mistakes when improving your credit.
Stop Using Credit Cards
One of the first ways to improve bad credit is to stop using credit cards. When you stop charging, you will not accumulate more debt. It sounds simple, but it will take effort and determination to put those credit cards down. It is important that you take control of your situation and your money versus being controlled by credit and what you see. Put the card away but do not close the account. Old accounts that have a good record are significant when it comes to your credit score.
Credit Report Review and Disputing Misinformation
Get a copy of your credit report and begin to dispute information that does not belong to you. You would be amazed at how misinformation can bring your score down. Seize this opportunity to get your credit report, review it thoroughly and remove information that is incorrect. When you dispute information, it has to be corrected within 30 days and that is certainly a quick way to improve your credit if you detect incorrect information.
Old Debt Payoff Plan
If you have discovered small, old debt and you are now in a position to pay it off, then contact the creditor and share your situation. Find out if you can work together and arrange a pay off or if the creditor can settle the account with you for less than the amount owed if you have cash in hand today. This is a benefit in itself because it will free up money for other bills or accounts you want to focus on.
Delinquent Accounts Made Current
Another step you can take is to bring any delinquent account current and remain current. Contact the creditor and arrange to bring the account up to date. Discuss with the company your circumstances. If you make the account current, ask the company if it will work with you by lowering the payment amount or changing the due date. Bringing delinquent accounts current will influence your credit in a short amount of time. Payment history makes up 35 percent of your credit score.
Patience
Debt did not occur overnight. It will not be improved overnight. Use these ideas to make your own plan and stick to it. You could begin to see improvement in your bad credit within months. It requires you get involved and be determined to improve your credit situation and not fall into the traps of applying for more credit and buying on impulse.
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