One of the biggest effects of the economic crisis is that millions of people have seen their credit score badly hit. For many people, it still tenuous as the way they have lost their good record, many responsible people have been left without jobs, without house and some without goods.
Though things have got much better now, if you are still in that large group, you have to look ahead and prepare for a better future. We have all learned the lesson and now the consumer is more cautious, has learned to live with less and has identified the real things that are essential.
For many people, this has been like a new beginning, and they are in the process of recovery. It is not easy and it will take time, but it is possible. Historically man has demonstrated his ability to recover from difficult times, and these will not be the exception. The first step has to be aimed at having a job or improving your income. Once you do, you can work to rebuild your credit score. In this post, we will see how to rebuild credit score.
Prepare Your Budget
Make one adjusted to your new family situation that includes real income and expenses. Evaluate where you can make cuts and what expenses should be kept and analyze if you can cover them without incurring new debts or completing with credit cards.
Pay Your Bills On Time
Even if you have had delays in the past, if you are already recovered, the best way to prove that you intend to pay is by doing so and if possible, before the payment deadline is met.
Keep the Amounts down on Credit Cards
Even if you have high credit limits available, do not use everything. That way the time will come when you can pay off one of them.
Use Cards Only in Cases of Extreme Needs
Avoid paying for expenses with cards which are not essential such as food, entertainment and clothing purchases. Limit these to pay in cash.
Don’t Apply for New Loans!
In addition to being denied if your credit is affected, requests will continue to lower your credit score.
Be Careful of the People Who Promise You to Miraculously Improve Your Credit!
Consult first and look for recommendations or complaints before putting yourself in the hands of strangers. If you decide to look for a credit counselor, ensure they have permits to operate.