If you’re struggling with bad credit, you might find it hard to get loans or financing. This can be pretty rough when you’re trying to buy a house, a car or whatever other large purchase you have looming.
If you’re trying to repair bad credit, it can feel hopeless sometimes. However, you’re in luck: today, we’re talking about some steps you can take to start repairing your credit.
Even if you don’t like the idea of bills going through automatically, it’ll save you a lot of trouble if they do. Setting your bills up with automatic payments makes it so they can’t slip through the cracks. Not to mention, automatic bill pay saves you time and hassle! Late bills are like kryptonite to your credit, so avoiding them any way you can is critical.
On a related note, if a bill doesn’t allow you to set it to automatically pay, set electronic reminders for yourself. Your phone has a reminder function, so use it! It’ll save you a ton of headaches and help your credit. Just make sure you stop paying bills after they’re already due!
This isn’t going to be easy, but you have got to start paying down your highest interest rates. Your debt isn’t going anywhere: in fact, it’s growing by the minute. The sooner you pay down the biggest interest rates, the sooner your credit will start to recover.
Not to mention, it’ll free up more of your money down the line. You can get yourself out of this hole, you just need to keep your head down and keep plugging away at it.
Once you’ve paid off that credit card debt, put it away. Or, better, cut it up. Credit cards are terrible for your credit score if you don’t pay the balance every month. And, let’s be honest, if you paid the balance every month you wouldn’t have bad credit. If this sounds harsh, that’s because the reality is harsh. Credit cards aren’t for everyone, and those with poor impulse control or money management skills shouldn’t carry credit cards.
There are plenty of other ways to pay for things that don’t involve using a credit card. Debit cards, for instance, offer all the same benefits as credit cards. The only difference, of course, is that you can’t spend money you don’t have with a debit card. That means you won’t tank your credit if you overspend, you’ll just run out of money. That said, you should also try to stop overspending.
While none of these strategies are going to repair your credit right away, they’ll start you on the right track. A journey of a thousand miles starts with a single step, and these are your first steps. If you start to follow this advice, you’ll likely see your fortunes changing.
If you have serious credit issues and are unable to follow even these tips, we suggest seeing a professional credit counselor.