Getting Out Of The Bad Credit Fiasco Starting Today!

If you are like millions of Americans, you do not have a perfect credit rating. The first thing I would recommend is for you to visit Heighten Credit, it’s a resource filled with ways to boost your credit fast! While most people get by with an average rating, there are still millions more who suffer from poor credit. The mission, of course, is to fix that credit rating as quickly as possible. The problem is that there is no real quick fix to repairing one’s credit, only a slow, methodical process that allows you to undo the damage, bit by bit. Let’s take a look at the basic process everyone can go through to repair a damaged credit rating.

The first step for many is the most difficult. To get your credit rating back on track, you need to seriously cut down on unnecessary spending and begin to pay back your balances on the credit cards you have. That means making more than the minimum payment each and every month. This, of course, is easier said than done, but no other single act can improve your credit score faster than paying down your existing balances.

Second, you need to make sure you pay all of your bills on time. Many people do not realize this, but things like your utility bills, your mortgage and other such bills are also reported to your credit bureau. When you have poor credit, any positive reporting can help you and your credit score recover, so don’t let any important bills lag.

Ways You Can Boost Your Credit Score

You will notice that your credit is beginning to turn around once you start to get more reasonable credit card offers in the mail. You will notice the interest rate offers on these cards start to drop, from 24-percent, to 20-percent to rates in the teens and even lower! Once you start to receive interest rates in the single digits, it is an excellent sign that you have healthy credit once again.

There are also a few things that you need to watch out for as you start to rebuild your credit. It is human nature to go out and cancel some of the high interest rate cards that you have in your wallet since they were the ones most responsible for getting you into this mess in the first place. But it is important to take a deep breath and simply put the card away someplace where you won’t use it.

The reason is the fact that once you cancel a line of credit, even one with poor terms, it negatively affects your overall credit score. Why? Because suddenly your debt ratio, meaning the percent of your available credit that is used up, skyrockets. The only time something like this is a good idea is if the terms of that card include an outrageous annual fee that you are having trouble paying or any other ridiculous fee structure that you can’t pay. Otherwise, leave the card alone, pay it off and then call the card company back when your credit is healthier and ask for a change in terms. Most card companies would rather keep you as a customer than lose you.