How to get rid of a bad credit rating
2 03 2012Millions of people around the UK suffer from a bad credit rating however, getting rid of bad credit is not impossible, as long as you follow some steps and be disciplined with your spending habits. Before you take any steps get a copy of your credit report. Look at it carefully to see if there are any listings which may not be yours. To get your credit report you need to contact Veda Advantage.
First of all request copies of your credit reports from all three major credit reporting bureaus. Each bureau reports different data and has a different method of credit scoring. Because you don’t know which bureau prospective lenders will review, it’s vital to make sure that all of your reports reflect a picture of good credit health. By law, you’re entitled to a free copy of your credit reports once every year.
Make sure you pay off any debt you have, starting with the biggest debt first. Change your spending habits to live under your means and devote some of your paycheck each month to paying down your debt. Debt consolidators can be a great resource to simplify things, although you should research first.
Get rid of any credit or store cards. Some credit cards, especially store cards, carry very high interest rates. This can get you into real trouble if you are not disciplined. Cut up these cards if you want to repair your credit. As some infringements take 2 or more years to be removed from your credit report you do not want to increase your chances of creating another infringement and starting the whole process again.
Pay all your bills on time. This is the number one way to get rid of a bad credit rating. Loan companies want to see that you can pay your bills and that you are not maxing your cards out. There are bad credit loans out there but when you are ready to buy a car or a house, you’ll want the highest marks possible on your report because your payments will be much lower.
Lastly, but this is very important, don’t close old credit accounts just because they are paid off or are standing idle. It is a myth that keeping idle accounts hurts your score. In fact, it will make it better because having more credit open looks good. Especially since its more credit you are not paying late or not at all.
