Repairing bad credit and maintaining it is like weight loss. You want it but it’s difficult. You sometimes even achieve it but it’s hard to maintain. Just like the weight loss struggle is real, repairing bad credit and maintaining can be challenging too. But again, like losing weight, you need a lifetime commitment to certain things to ensure you are not trapped with the bad credit history again.
People tend to go overboard with their spending – whether it’s with a credit card or debit card – and don’t use it responsibly. This is one of the major reasons why the credit and debit card stats in the UK are so disappointing.
In order to maintain good credit score, you first need to find out what’s backfiring. You can only begin rebuilding your credit when you figure out what went wrong first. In addition to finding out all the negative factors that have a constant impact on your credit score, you also need to manage it responsibly with time. If commitment is what you lack, then you definitely need to work on that before you see your credit score improving.
We will not talk about tips and tricks that sounds too good to be true. In fact, we will be covering some of the most practical tips that are easy to implement for great results. If you have been searching for some real information, continue reading.
Changes You Can Make Right Now!
So without further ado, check out the list of things below that you can do right now. Keeping a check on these factors can help you maintain good credit score in the long run.
What Does Your Credit Report Looks Like
As mentioned earlier, you can only begin fixing and repairing your bad credit score when you know what went wrong. For that information, you need to have a look at your credit report. You can ask for a copy of your credit report and go through it for the details. Check for both explanation for the bad score as well as for the possibility of any error.
This report should include all the important information collected for calculating your score and there is definitely a chance for errors. The wrong listing, for instance, could be a major reason why your credit score is bad. Check to ensure if the late payments are listed correctly. Also, compare and see if the amount of your open accounts is right. If there are any errors, challenge them and get it fixed with the credit bureau with proper proof.
Set Personal Reminders
First and foremost, you should focus on setting your priorities right and know that making your credit payments should be on top of the list. Undoubtedly, late payments could be a major contributing factor to your bad credit score.
Some banks are efficient enough to send you multiple reminders on your email or text message to warn you about the due date. But most of the times, you are left on your own to keep a track of your payments and due date. Setting reminders is one great way to make sure you are never late with your credit payments.
If you have a very tight schedule, you can even opt for the automatic payment facility that allows the credit amount to debit from your bank account for the credit payments on a certain day, every month. While this could help you big time with your credit card payment, it is not always helpful as there are other credit payments and money management involved. Opt for whatever seems better and more suitable.
Readjust the Debt Amount You Owe
In order to maintain good credit score, you can also consider getting the debt amount reduced. However, this is easier said than done. If you are able to achieve this, you can instantly improve your credit score big time.
This change needs commitment – remember the weight loss example above? You need to give up on using your credit cards right away. It is unfortunate how we rely on plastic money so much – especially the one that does not really belong to us. It is natural to go overboard with it and expand our budget even when it’s unnecessary.
Go Through the Credit Report Again
To maintain good credit score naturally, you must go through your credit report again. Identify all the active accounts and determine the amount you owe on each. Also, assess the overall credit burden by determining the rate of interest on each. Next, design a payment plan.
Put most of your credit budget for payments for credit on highest interest. While doing so, you can maintain minimum payments for the rest of the accounts. You need to get the elephant out first. You can take care of the tail after that!
Taking one step at a time can help you achieve and maintain good score. While it can take some time, the results are going to be worth the wait. Also, when you will make these changes, they may not seem too insignificant – obviously because you will not be saving any money. But once you start closing more and more credit accounts in your name, that’s when you will start enjoying it. Follow the plan and make sure you stay committed to it.
All in all, repairing and maintaining good credit score is about fixing the mistakes you have been making throughout this period. If you need a major financial assistance – such as help in buying a car or a house –a bad credit report can ruin your dreams. But it’s never a good deal if you leave things as they are and feel disappointed. In fact, now is the time to fix all the mistakes you have made and maintain good credit score now. Working on to improve your scores will require both discipline and patience but it is totally going to be worth it in the end.
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