How to Fix Your Credit Score and Rating

If you have ever been declined for a line of credit, then you know the embarrassing feeling that comes with standing in front of the cashier while the decline unfolds. If you have, then you likely have never applied for credit again, thinking that your credit score can’t be changed.

If this sounds familiar, all is not lost! After all, almost everybody in the world is in debt. This article has some easy to follow tips to help you repair your credit score.

  1. Consolidate Your Debts
    1. Do you know what a lender or credit thinks when they see multiple lines of credit? Multiple opportunities for you to blow your budget and not be able to repay your obligations.
      1. If you can’t pay off any of your credit or store cards, consolidate them into a personal loan. Once you have done this, be sure to cut up the remaining cards and close the associated accounts. This shows creditors a clearer picture of what your monthly spending will look like and help to paint you in a more positive light.
    2. Direct Debits Are Your Friend
      1. Have you ever paid your telephone bill late by a day? How about the electricity? Do you remember paying one month’s bill a couple of days late? If you do, then your credit score has been affected.
        1. Instead of paying your bills manually, sign up for direct debits. Each month, put divided amounts for each bill into a separate account which is linked to your direct debits. This can help to improve your score dramatically.
      2. Set Yourself an Allowance
        1. Budgets aren’t enjoyable to follow, but they work. Set yourself up a budget and stick to it. Be sure that it includes an allocation for a small amount of savings. This can work to show that you can keep the money without spending it.
          1. To help keep your budget on track, plan for small niceties such as a day out at an amusement park or a small shop on the Groupon Coupons page for Columbia. Whatever your interest are, be sure you leave a little money for them.
        2. Stop Spending!
          1. Can you believe that your favorite store is finally having a sale? How about that great new TV which is heavily discounted? Whatever it is, resist the urge to spend more money!!!!!!
            1. Spending money is exactly what got you into the financial spot in the first place. The next time that you see a special deal and consider buying the item, use the money to put against your debt or savings, instead.

Repairing your credit score and rating isn’t something which you, or anybody, can do overnight. However, if you stick with the ideas in this post, you will see yourself return to financial freedom in no time!