There are millions of people in the United States who saw their credit score badly affected by the economic crisis and now that unemployment has dropped and it seems that the new economic opportunities will arise, they wonder if they will be able to buy a house, a car or some other products at some point.
The answer is that if your credit does not improve, even if you have got an excellent job again, it will be quite difficult or almost impossible in a few cases for you to get the loan approved. But the good news is that time heals everything, as a saying goes, and even ‘bad credit’ can be improved.
There are hundreds of companies that promise to repair credit, but what many people do not know is that they themselves can take the most important steps to get back a good credit if you are well aware about the steps of how to improve credit score. Here I am sharing a few tips with you to make your score better, so that you can have convenience whenever you need to buy a house or car.
1 – When You Have New Credit Cards, Use Them Wisely.
If possible, check the monthly balance, which shows two things, that you have ability to pay and that you control spending. Do not take them to the limit.
2 – Make Timely Payments
It is also a key to pay on time, if possible ahead of time and an amount greater than the minimum payment that will be established. Ensure you also pay well for your monthly rent and other obligations such as water, electricity, cable and cell phone. It will be taken into account when granting new credit.
3 – Be Patient!
Improving your credit will take time and if you have had bankruptcies or loss accounts, it will take years to disappear from your credit report, affecting your credit score. If you show that the problem that affected you has already been solved and that you have repayment capacity again, it will be extenuating when evaluating a credit.
4 – Try to Catch Up on Late Payments
Call your creditors, and never hide from them. Explain your situation and try to make payment arrangements that you can meet. If you are offered no alternative, you can seek credit counselors, as many of them are free. Keep evidence of any information that creditors send you in writing.