How to improve bad credit

Credit is one of those things that seem to be vital to our day to day existence. If you want to buy a house you need good credit in order to take advantage of the lowest interest rates. If you want to rent an apartment your landlord will check your credit to make sure you are financially responsible. Looking for a new job? Don't be surprised if future employers check your credit as well.

Instructions

1

The first thing that you can do is get a free credit report to get an idea of just how bad your credit really is. As a rough guideline, above 700 is considered great credit. Anything less that 620 is heading towards potentially bad credit. Less than 500 and you could probably benefit from some credit repair.

2

Once you have your credit report check over it thoroughly and make sure that you agree with everything on it. If you see anything out of place make sure you contest it.

3

If you have determined that your credit needs to be improved the easiest thing you can do is to make sure all bills are paid in a timely manner. A bill paid late can show up on your credit report for up to seven year. Every incident of late payment will negatively affect your credit score. Try using reminders in an Outlook calendar to help keep you on track.

4

If you carry a lot of debt on your credit cards it will be important to slowly work it down. You don't have to have a zero balance on your credit card but the balance should be less than 50 per cent of the credit limit of the card.

5

If you have someone that you really trust (like a parent) who has good credit and is willing, ask them to add your name to one of their credit cards. They don't ever have to give you a physical card for the account but just being associated with their good credit will boost your own.

6

Some people spend a lifetime repairing bad credit so be patient and keep working and your credit score will rise!