Bad credit can impact anyone whether you’re just starting out and make a mistake with a credit card or you’re close to retirement and make a few bad decisions about payments that you’re making. All it takes is a few missed payments to make your credit score drop significantly. Fortunately, there are a few ways that you can fix your bad credit in the new year so that you can once again have the opportunity to buy a new car, buy a new home, or purchase the other things that are dependent on a good credit score.
Find a reputable source where you can get your credit score. Once you know your true score from all of the major reporting agencies, you can start putting the pieces together of what you owe and how old the debt is as some companies will accept a lower amount than what is listed on your report. When you’re trying to get credit information, you should try to use a non-biased party who doesn’t have a stake in making money off of your credit. This person should also have quite a bit of knowledge about the business world and the best ways to increase your score without spending a lot of money that you don’t need to spend.
If there are several debts on your credit report, you need to organize them based on which ones have the highest interest and which ones have the lowest. The debts that have the highest interest should be paid off first as these are usually the ones that are pulling your score down the most. It also means that you’re going to get the largest payments out of the way before paying off the smaller amounts.
Look into debt consolidation if possible, especially if you have multiple accounts with the same company. You can usually get your overall payment lowered so that you don’t have to pay off the entire amount of what you owe. Many medical companies will consolidate debts that you owe as well as credit cards. You can transfer the smaller amount of what you owe to another card that might have a higher interest fee but that will allow you to get rid of the other credit card debt that you owe so that you’re only making one payment instead of two.
Talk to the companies that you have accounts with to see if you can get a lower interest rate. This will make it easier to get the amount paid off sooner because you’ll be paying more toward the principal amount instead of a large amount to the interest. Try to find a loan for people who have bad credit.
This will not only improve your credit score as long as you make the payments on time, but you can use the money to pay off some of the smaller accounts that you have on your credit. A secured credit card is an option to consider and is usually easy to get because most of them don’t perform a credit check. Make sure you keep your payments to a manageable amount to get the balance paid off each month. As your payments are posted, you will find that your credit limit will usually be increased. Your credit score will also increase, making it easier to purchase the things that you want and get more credit cards and loans that can help in paying off your bills. Make sure you check your credit score at least once a month as most companies report every 30 days. Some credit agencies will send a notification if there is anything new listed on your report or if there is anything removed from your report.