Dear B. Scott,
I have been trying to move out of my parents house, but it’s incredibly difficult. There’s really no other way else to say this, I have bad credit. While in college I had a few lines of credit that I neglected and now it’s made securing a living situation nearly impossible. Do you have any advice on to how I can fix my credit?
Don’t feel bad love muffin, most of us have had or will have ‘bad credit’ or at least a drop in our credit score. We often don’t realize how important it is to have ‘good credit’ until we need it. I needed a little reinforcement on this topic. So, I collaborated with my mother a banker of over 40 years and a person with impeccable credit to provide you the following seven tips to help repair your credit.
1. Educate yourself about things hurt your credit score. Learn what things have a negative effect on your credit score so you can stop making these mistakes.
2. Save what you can. Don’t jeopardize accounts that are in good standing for accounts that are not. You must continue making timely payments on all your current accounts.
3. Distribute disputes over a period of time. If you’re disputing several items on your credit report, only put one dispute in each letter and space out your disputes. The credit could become suspicious of too many disputes and think you’re trying to fool them.
4. Don’t immediately rush to close credit cards. Seldom does closing a credit card improve your credit score. In fact, closing a credit card is more likely to decrease your credit score, especially when the account has a balance.
5. Expect setbacks, don’t be discouraged. Sometimes your credit score may drop unexpectedly as you go through credit repair. This doesn’t always mean you’ve done something wrong. Just make sure you continue adding positive information to your credit report and your credit score will improve over time.
6. Don’t be afraid to get consumer credit counseling. If your debts are significant, creditors aren’t willing to work with you, and you can’t seem to come up with a payment plan on your own, consumer credit counseling is an option for getting back on track.
7. If bankruptcy is certain, it’s better to file sooner rather than later. If filing bankruptcy is the only way you can get back on track, don’t waste time on strategies that won’t work. Evaluate whether you should file bankruptcy early so you can start the process and begin to rebuild your life. There’s no need to be ashamed or embarrassed.
I hope these tips help you on your journey down the road to splendiferously divine credit and kudos to you for deciding to face this issue.
Love,
B. Scott
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