Do you possess a good credit rating or are you like so many now and suffering from the credit downturn? Having poor credit when compared to good can make life really more like a daily ride of frustration and embarrassment. When once you could pick up the phone or go online and pay for anything that you needed, this no longer rings true. If you tried to use your old credit cards when you have poor credit the system just rejects you, no questions asked. Makes you feel somewhat subhuman sometimes.
Okay, so with all this said and done, what does it take to begin to rebuild credit? Firstly, patience – and lots of it! Its really no good to get upset and impatient each time you have a set back with regards your poor credit rating. In fact, the way I see it myself now is that if I try to get anything at all on credit and I am accepted for it its a real blessing and it gives me a real "buzz" and makes me believe in myself once again, whereas not long ago I did not!
Get yourself a free copy of your own credit rating. You can do a general internet search for this or go to AnnualCreditReport.com where you can get one free. Have a look at this report closely and try to figure out if there any errors on it. These days often there are many errors made when documentation credit records and this can absolutely adversely affect your own rating.
If you feel there is anything on there that can be challenged, get in touch with the credit reporting agency which can be found at creditreporting.com in the United States and creditreporting.co.uk in the UK. In Australia you can visit privacy.gov.au/faq/individuals/q17 for further information.
Okay so once this is done its time to assess your current situation with regards to paying bills on time and your expenses. I know its a bit painful to do this but it really is helpful. One key factor to improving your credit is to pay your bills on time. This applies even if you are making the minimum payment to your credit cards. A minimum payment made on time is far better than a late payment or no payment at all!
Next is to make a list of all the things in life that are influencing your credit in a bad way. This obviously could have things like having missed some payments on bills such as telephone, electricity and the like. You can not make this disappear but what you can do is make sure you budget well enough to never let it happen again. And if you can not afford to make payments its a simple matter of cutting down on something in life or trying to make that little extra money. Okay, so this may not be so simple for everyone, but for many of us it is – its just a case of being more focused on what we HAVE to do.
In a nutshell and very briefly, this is what it takes to improve your credit rating and to rebuilding credit. Its a long journey really and one we can travel together as I too am going through this process too.