If you have had trouble maintaining good credit or have gotten far into debt, it can seem like you’ll never be able to fully pull yourself out of that hole. Not only does bad credit make it difficult to make large purchases like for a home or car, but it also can affect your mental well being knowing that you have such an uphill battle to fight. However, there are a few simple things you can do starting today that will help you to begin repairing your credit. To show you how, here are three things you can do right now to fix your credit little by little.
Assess The Damages
Many people who have a lot of debt are often too afraid to actually see the real amount of money they owe. They fear that the number will only make them feel more powerless once they stare it in the face. However, LaToya Irby, a contributor to TheBalance.com, shares that you can’t begin to make much progress toward paying off your debts and strengthening your credit until you know the extent of the damage. For this reason, the very first thing you should do—and something you can work on today—is get a copy of your credit reports from the three major credit bureaus.
Create A Payment Plan
Once you have the full picture of your credit history and know the amounts you have due, it’s time to create a plan of action for how to address your debts and start nurturing your credit. MyFICO.com recommends devising a way that you can put a lot of your available funds toward paying off your debts each month. This will require you to have a solid budget and to stick with it. You may also want to schedule payment reminders for yourself so nothing slips through the cracks. While this may be challenging in the beginning, you’ll be glad you did it once you see your balances start to go down.
Keep Your Credit Card Balances Low
According to Dana Dratch, a contributor to BankRate.com, something that is good for your credit is to have a lot of credit available to you but to not have to use a lot of that credit. This means that you work toward keeping the balances on each of your credit cards or other lines of credit as low as you can. Dratch shares that as long as your balance is 30 percent or lower than your total available credit, your credit score should be getting a boost rather than taking a hit.
If you know you need to improve your credit score but have been nervous about where to start, consider implementing some of the tips mentioned above today.