Having a bad credit score doesn’t have to be the end of your financial life. There are a lot of things that you can do to bring that score up and start rebuilding your credit for the future. This article will show you how you can make this happen.
Be careful about which collection accounts you pay off. With the current way the credit reporting system is structured, paying off a collection agency may actually lower your score because the date of the last activity will be reset. A paid collection has no less of an impact on your score than an open collection. This resetting of the date of the last activity also means the seven-year reporting clock will restart. If you can wait out a collection agency, do it.
If you work every day but never seem to have any money, you should track how much you are spending and on what. By keeping a daily list of everything you spend your hard-earned money on, you will be able to cut down or do away with those expenditures that are not required. You will be able to establish a realistic plan of how much money you need for a month, and you can use the rest to pay off other debts or just save the money, the choice is yours.
When using a credit repair service, be sure not to pay any money upfront for these services. It is unlawful for a company to ask you for any money until they have proven that they have given you the results they promised when you signed your contract. The results can be seen in your credit report issued by the credit bureau, and this could take six months or more once the corrections were made.
Having great credit may seem like a dream right now, but if you work hard at it and let time be on your side, you will be able to increase your score and have a credit report that will open up a whole new world of financial possibilities. If you have some patience and perseverance, you can get started on your credit repair today.