Have Bad Credit History? 6 Steps For Improvement

Many people today are being plagued by bad credit history. Because of overstepping our bounds and getting ourselves into debt we can't control, a bad credit history is becoming an all too familiar sight.

Many people will turn to credit counseling services, while others will resort to bankruptcy which will only hurt their credit history even more. The good news is that your bad credit history does not have to haunt you forever. In fact, with a little bit of time, and a lot of effort on your part you can raise your credit score back up to acceptable levels. Here are some steps to take to begin moving your credit score higher.

1. Order Your Credit Report

Sit down with your credit report and go over it very carefully. If you see any thing on there that isn't right, then contact the credit bureau immediately. They will usually work with you in fixing anything that is wrong on the report. This alone will raise your credit score. It is important that you carefully review your credit report once a year to see if anything has changed or if any other mistakes are being made.

2. Make Your Payments on Time

It may take a little while to reflect on your credit score, but when you begin making you payments on time your credit score will begin to climb. One of the criteria on the credit report that lowers your score is late payments. Make it a priority to pay your bills on time as you get paid.

3. Pay off Credit Cards Quickly

Everyone knows that if you just make the minimum payments on a credit card you will basically be paying it off forever. Make it a point to pay them off one by one. As soon as one credit card is wiped off your record you score will rise as well as your credit to debt ratio.

4. Apply for a Secured Credit Card

As soon as you can you need to be building your credit with credit. Apply for a secured credit card that you can pay back quickly. Don't make a lot of purchases, but just having something that you are paying on, and not behind on is going to look better.

5. Get a Small Personal Loan

In the beginning this might hurt your credit score as you are incurring new debt, but it will work out in the end as you pay back the loan after a few months. When you get a personal loan, make it a small amount that you can pay back with an amount tucked away in a savings account. In fact, you can use the savings account as security for the loan. Pay a few payments on time, and then pay it off completely.

6. Continue Paying Off Bills

In then end it is all about keeping your bill paid on time. Continue with the secured credit card and applying for larger and larger personal loans. As you pay these back you are going to be building your credit history back up even though you will still have some old history on it.

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