9 Little Tricks On How to Fix Bad Credit

How to Fix Bad Credit

 

Do you have debt problems and wondering how to fix bad credit?  Are creditors basically knocking on your door?  Maybe your quality of life is suffering due to the fact of making bad financial decisions in the past?  In any case, if you fall in that category, there really is light at the end of the tunnel. 

 

 

Let’s look at some real and actionable ways to getting your credit back on track.  For instance, a bad credit (FICO) score could literally cause you to not get a loan that you need or could cost you thousands of dollars in interest payments and headaches.  So listen clearly and let’s tackle this together.

 

 

First of all, the Fair Credit Reporting Act (FCRA) is U.S. law that was basically passed to help protect consumer’s credit interests against any unscrupulous claims by creditors and provides a level playing field. 

 

In a nutshell, FCRA implies that , you have legal rights to dispute any or all negative entries from your credit report and be able to fix your own credit.  The three big credit reporting bureaus (Equifax, Experian and Trans Union) are under obligation to investigate any disputes on your part.  How’s that for looking after the consumer?  It’s not all gloom as you can see.

 

 

Here are Real World Tricks on How to Fix Bad Credit:

  1. Obtain your one free credit report from FreeCreditReport.com.  If you can afford to, actually pay for your three reports and notice any discrepancies.
  2.  If you have discrepancies on your reporting, make sure to dispute with the creditor of the transaction(s).  Note: Whatever big bureau shows the discrepancy, ask them to remove the negative mark from your report.  Finally, open a dispute letter with the creditor and send it by registered mail.  The creditor by law has 30 days to respond on the negative mark(s)
  3. Make sure to pay your bills on time.  Late payments can negatively affect credit.
  4. Keep Low Credit Card Balances / Loan Balances.  When you keep lower balances owed, you are usually awarded with higher scores.  Another reason to stay out of debt
  5. Do not default on loans – big or small.  When you default on loans, this negatively affects credit.  Instead, stay with your loans, pay on time and watch your credit score soar.
  6. Avoid Foreclosures and Bankruptcy.  Creditors look at these events as a sign of financial weakness.  Better to do a short sale or negotiate better rates or even write off parts of your loan.
  7. Don’t close old credit card accounts with payment history.  Cut them up or literally freeze them instead.  These actually help your credit score because there’s a history of credit being issued.  Read ‘How I Live Without Credit Cards’ if you must close out your cards.
  8. Avoid ‘wants’ type purchasing.  Costs you a lot in interest when you purchase using credit cards for something you want.  Practice purchasing what you need instead by asking yourself – “ Do I really need it?“
  9. Use Cash vs. Cards for purchases. Using cash saves interest, no debt plus you spend less usually on each transaction. Learn how to ‘Debt Proof Your Life’ and build wealth instead of debt.

 

 

Ok, you’ve got a massive head start on how to fix bad credit with real strategies above.  Start today and rebuild your credit and start building riches instead.

 

 

Could this help anyone you know? Make sure to share this post with your favorite share sites below.  I stay reserved for any questions on the topic, so please Comment Below.

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Category: Debt Freedom

  • Richa Karti

    Keeping a tab on your spending will help you to maintain a
    good credit history. Bad credit is all but a result of some bad financial
    decisions. Try to take sound decisions regarding your finances. Stop spending
    unnecessarily and if possible go out without your credit card. You will end up
    spending less.

  • Anonymous

    Sure thing Richa, with plastic like credit cards, you don’t ‘feel’ the pain of spending too much like you would with cash. So, using cash for purchases is a much better idea.

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