Getting into credit problems has become far too easy in today’s world of simple payment methods such as credit cards and lines of credit. It’s hard not to fall into the trap of making a big purchase on credit before taking into consideration the fact that eventually the debt will have to be paid back and pretty soon you find yourself asking how do I fix my credit. Furthermore, as the economy maintains its slump, more and more jobs and wages are being cut making it difficult for many families to make ends meet. This results in the necessity of relying on credit to get through tough months.
Unfortunately, eventually credit problems catch up with everyone and it isn’t long before creditors are knocking on your door demanding payments. One of the worst side effects of this is consistent dings on your credit report. Regardless of how well you have maintained your credit in the past and ensured your bills were paid on time, it only takes relatively few late or missed payments to completely destroy your credit rating. This can leave you looking for fast credit repair methods.
A poor credit rating can be disastrous, particularly if you find yourself often relying on credit to pay for unexpected expenses. It can mean being denied for future credit requests and can even result in an increase of your current interest rates. This has many people asking, “How do I fix my credit?”
Fortunately, there are a number of fast credit repair options out there and we’ll provide you with a few answers and methods to the question of how do I fix my credit.
Fast Credit Repair Method #1: Debt Consolidation
If you’ve found yourself looking for an answer to the question how do I fix my credit, this is a great fast credit repair method available to you. Debt consolidation is the process of taking out one big loan in order to pay off all of your other debts. This fast credit repair method works in such a way that any late and missed payments will be paid off. Often the creditor will be willing to notify credit rating services and have your missed and late payments removed. This is one of the quickest ways to improve your credit.
Fast Credit Repair Method #2: Pay Down Your Debts
This fast credit repair method should go without saying as it is fairly obvious. However, people often become so frantic with answering the question how do I fix my credit that they neglect to sit down and logically think out a debt management strategy. By putting a budget into place and following it religiously, you’ll be able to pay down your debts faster than you think. The idea is to be consistent with your payments. It can be tough to fight the high interest rates of your credit cards and while this may not be the most fast credit repair method, it will work. When paying down your debts, pay down the credit that has the highest ratio of debt to available credit. Ideally you want to use only 20% – 30% of your available credit to maintain a good score. If you find yourself asking how do I fix my credit, take a deep breath, sit down, and plan out a strategy that will work for you.
Fast Credit Repair Method #3: Look for Errors
Errors happen everywhere and if errors have you asking how do I fix my credit, it’s a good idea to have them fixed. The first step is taking a look at your credit report. This can be found available for free online. If your budget will allow for it, you may want to consider applying for monthly reporting from a credit reporting service such as TransUnion. The benefit of this is that they’ll notify you of any new activity on your account and can stop errors before they affect your rating. If you do in fact find errors on your report, one of the fast credit repair options is to notify the reporting company and have them removed. As mentioned, it only takes one or two negative reports before you’ll be asking how do I fix my credit and getting rid of any and all errors is a necessity.
How Do I Fix My Credit – 5 General Tips
The three fast credit repair methods above are a great way to put you on the fast track to repairing your credit. It can be tough to find answers to how do I fix my credit and for that reason, we’ve included some general tips below that will help you fix your credit, and remain in good standing once you’ve done so.
How Do I Fix My Credit – General Tip #1: Spend Less
One of the best ways to help along your fast credit repair is to spend less. If you’re a shopaholic or enjoy eating out multiple times a week, take note of this and work hard to cut back on spending in these areas.
How Do I Fix My Credit – General Tip #2: Destroy Your Cards
If you carry numerous credit cards around and have trouble walking past your favorite store without pulling them out, consider destroying a few of your cards. This can be a great way to help with your fast credit repair methods. Just don’t forget to keep making payments.
How Do I Fix My Credit – General Tip #3: Budget
In one of the above fast credit repair methods we mentioned that creating a budget is a great way to take control of your spending habits. Budgeting is such an important step to getting your credit back on track that it bears repeating – budget everything!
How Do I Fix My Credit – General Tip #4: Reward Yourself
It may seem counterintuitive, especially when you’ve put a lot of work into a fast credit repair regimin. However, rewarding yourself every few months for hitting a milestone can be a great way to keep you on track – just don’t go overboard.
How Do I Fix My Credit – General Tip #5: Get a Second Job
If you’re in a dire position and truly want to get out of it, a great fast credit repair method is to temporarily get a second job. Yes, it will be tough – but by putting an extra $100 or so on your high balance credit cards you’ll see great results in a relatively short amount of time.
Hopefully this article has given you some tips on How to Fix My Credit