How to fix a bad credit?
Your first question is why do you have bad credit? Is it because you have a lot of debt from bills turned into collection agencies or is it because you just don’t have any credit. Here are some steps:
1. Sign up for a free credit monitoring website like CreditKarma.com.
2. Review what debts you have. If you have bills out in collections, don’t be afraid to give them a call and work out some sort of settlement. If you have the funds to do so, some bills can be settled for a fraction of what the whole amount is. If that isn’t an option, see about setting up a payment plan.
3. You need to build your credit. Credit cards can be dangerous. It is exciting to have a bunch of new money to spend, but you need to practice self control. Enroll in a card and only use if for those purchases you were going to make any way and you have the funds for. This way, buy the item(s) with your new credit card and then you can turn around and pay off your credit card with the funds you were going to use anyway to buy the original item(s). An example of this would be using your credit card at the grocery store. Continue to remember self control! Credit One Bank is just one example of a company that will help you get a credit card with poor credit. Make sure you do your research and look at any fees associated with them.
4. Opt out of pre-screenings because every time your credit is ran, it lowers your score. This can be done at optoutprescreen.com.
5. Make any payments you have on time.
As your credit continues to build, don’t get tempted to take on more debt just because your credit score allows it. Buy within your means!
