Even if your credit rating is abysmal, you can improve it, provided you are willing to do some hard work and be disciplined.
One of the most important thing that you need to do in this regard is to pay all your pending dues on deadline. You may not believe at first but it is true that late payments ruin your credit rating.
In addition, you also need to minimize the quantity of credit cards that you possess. Make sure that you write a letter to the financial institution asking them to shut down your accounts. More importantly, report this latest development to the credit reporting agencies. After all, they are the one, who is going to update your credit report on the basis of your actions.
Do not follow the route of bankruptcies or tax liens. Talking about tax liens, it is a lien for not paying property and income taxes. The worse part about bankruptcy is that it is going to be there in your credit report for a period of ten years. On the other hand, tax liens will be there in your credit report for a period of seven years.
It is also a good option that you request in writing to the financial institutions you are dealing with to minimize your credit limit so that you can manage your finances in a much better way. Point to be noted here is that the complete amount of credit available in your account is taken into consideration by financial institutions even if you owe nothing.
Take the help of your friends and family members with regard to co-signing on a credit card or a loan package, so that you can improve your credit rating quickly. As usual, pay all your dues on time otherwise this move can easily backfire on you. Another option that you have is to opt for a secured credit card.
The beauty of secured credit card is that it plays a pivotal role in ensuring that there is some improvement in your credit rating. But for that to happen, you need to have specified amount of money as a balance in your account, so that charges can be covered. Last but not the least, get an annual copy of your credit report. This is important because when you analyze your report carefully, you may find some discrepancy there. If that is the case, contact credit reporting agency immediately.
Joe Arias writes advice and articles on various topics regarding but not limited to just credit