Your credit rating is one of the most important elements of your financial well-being. Without a good credit rating, you are unable to borrow money at a reasonable interest rate, buy a home or finance your child’s college education. Unfortunately, there are situations that arise in life that may damage your credit rating. Unemployment, illness and the death of a spouse can all result in a financial crisis that causes you to fall behind on your monthly payments. As you struggle to pay your bills each month, late payments, over-the-limit balances and other credit blemishes harm your credit history. However, you can take steps to repair your credit rating and improve your financial well-being.
Steps You Can Take to Repair Your Credit Rating
If you have struggled with debt in the past, you may feel as if you will never be able to repair your credit rating. That is not the case. You can take steps to repair your credit rating and improve your credit history. Some companies claim that they can repair your credit rating; however, those companies cannot do anything legally that you cannot do yourself for little to no expense. Typically, credit repair companies charge clients hundreds or thousands of dollars and some are nothing more than a scam. Instead of paying a company to repair your credit rating, you can take steps to do this yourself.
In order to repair your credit rating, you must “fix” your credit report as your credit rating is based on the information in your credit report. Unfortunately, there is no way to “fix” a credit report but you can take steps to improve the information on your credit report. This will improve your credit history and increase your credit score.
- Report errors on credit reports. Creditors and credit reporting agencies do make errors and these errors can harm your credit rating. Begin by obtaining copies of your credit report from all three main credit reporting agencies (annualcreditreport.com). Review each report for errors. Report errors to the creditor and the credit reporting agency and follow up to ensure the errors are corrected.
- Make all payments on time. The main component of your credit rating is your payment history. Making just one or two payments after the due date can seriously affect your credit score. Make all future payments before the due date to see an improvement in your credit score.
- Reduce debt. Keeping balances at 30% or below the credit limit will help repair your credit rating. A large portion of your credit score is based on outstanding balances. Concentrate on paying down debt as soon as possible.
- Create a monthly budget. In order to manage your money wisely and control debt, you need to have a monthly budget. If you have more money going out each month than you have coming in, reduce expenses and focus on spending less money so that you are not using credit to make ends meet. If necessary, consider getting a part-time job until you can pay down debt and reduce expenses.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
Latest posts by Travis Richards (see all)
- Should I Use A Loan Consolidation To Solve My Debt Problem? - 08.20.2015
- Best Way to Pay Off Student Loans - 08.18.2015
- What Is Foreclosure? - 08.13.2015