Save Your Credit Score!
Part one: Stopping the damage
If your credit score leaving more to be desired, it’s time to take control and save your credit score! As you have probably already realized, bad credit is a serious problem that can have serious ramifications on your day to day life. Thankfully, there are quite a few options for you to begin rebuilding. While it is important to realize that change cannot happen overnight, it is crucial that you get started as soon as possible. Here are a few of the most important steps you can take to begin taking in order to save your credit score.
- Check your credit score. If you’re reading this article, there’s a pretty good chance you already realize your credit score is not great. But you may not know exactly what it is. Perhaps you simply hadn’t realized it was bad until you were recently denied credit, or perhaps you’ve been intentionally avoiding it because you feared the results. Whatever the case may be, it’s time to find out. After all, knowledge is power. In fact, checking your credit report will even give you the opportunity to contest any potential mistakes, improving your credit score right off the bat. Just as importantly, it will allow you to view the crucial mistakes you have made in order to begin changing your habits.
- Pay your bills on time. This might sound obvious, but it’s important to realize that even a slight delay can cause big problems. It is also important to get current. If you are behind, fixing it as soon as possible will help prevent further damage and save your credit score.
- Keep balances low on credit cards. Even if you are making necessary payments on time, high balances can still damage your report. Watch out for them! Additionally, it’s important not to own too many credit cards–this will certainly not impress the credit agencies; even if you are managing to make your payments for all cards. Ideally, having one or two cards that you pay in full each and every month is the ideal dream to strive for.
- Reduce the amount of debt you owe. This should be obvious–the more debt you owe, the less likely it will become that lenders want to give you money! In extreme cases, paying off debts may require selling assets. After all, spiraling debt and bad credit could cause you to lose those assets anyway. It’s sometimes a better choice to simply reduce your debt and save your credit.
- Contact any creditors if you cannot make ends meet. Communication is key: ignoring a problem will not make it go away! Letting your creditors know that you are having problems will give them the chance to work out a plan rather than being forced to take drastic action.
Keep an eye out for next week’s installment right here on the Blue Marble Properties blog. In part two of ‘Save Your Credit,” we will present practical ways you can begin raising your credit score, as well as a guide to maintaining those better numbers.