If it hasn't already the time will come when you realize how important your credit score is.
Walking into a bank and trying to get a loan with low credit score won't be easy.
Even if they do decide to loan to you will likely end up paying very high interest rates.
It's best to start the process of credit rating repair well before you intend to get a loan.
1.
Get familiar with your credit scores and reports.
Order them at least a couple times a year and learn how to read them.
This way if there are any big changes you will know how and why it happened.
2.
Whenever you order your reports check over them very carefully.
The credit bureaus make mistakes and they will hurt your credit score.
The good news is you can dispute these items and have them removed.
This is actually the core of the credit rating repair process.
The companies you see advertised all over the Internet specialize in getting these errors removed.
3.
This next step may seem obvious but it is very important.
If you're not already start paying your bills on time.
I know I have about a dozen bills every month; you may have more or less.
Each one of these companies you owe money to report to the credit bureau.
By paying on time you will start to add positive marks on your credit reports month after month.
4.
If you know someone that has good credit they may be able to add use an authorized user on their account.
You will receive some of the benefits of their positive use of credit.
I would only recommend this with someone that you are very close to.
They must really be able to trust you not spend on their account.
Not everyone will be able to take this action but if you can it will help.
5.
This final credit rating repair tip directly relates to number three.
Start developing a budget and stick to it.
You'll be able to pay bills when they are due and you won't need to charge as much on your credit cards.
It is important to be able to set aside money each month to begin paying down credit card debt.
I wouldn't recommend closing your cards but carrying a lower balance will make things much easier.
Getting your credit card current will also stop the negative marks on your credit reports.