Getting through bad credit can seem difficult. You may also have been led to believe that it will be next to impossible to overcome your bad credit until you have waited long term. If you are ready to make the decision to clear up your credit, there are ways to get through this process. Here are five surefire ways to get your credit on the right track.
Stop using all cards
If you are currently using credit cards or other credit products and you have bad credit, it is time to put these items on pause. Lock away the credit cards and use cash or use your debit cards for all further purchases. It is hard to get a handle on your bad credit if you are still using credit. Place your credit cards in a lock box and stop using them until you are caught up.
Pull a credit report and work on the lowest balance
If you have items on your credit that are in collections or past due, you should start working on these. Pull up your credit report and note all the items that need to be cleared up or paid off. Look for the lowest of the balances and call the company to get the item paid off. Paying off the lowest balance can make you feel as if the goal is reachable and it can also make you feel excited when you do reach the goal. It will also help your credit by getting things paid off or in good standing.
Apply for new trade lines
Once you have begun to pay off all the bad trade lines, you should add new and good trade lines to your credit. You can apply for loans that cater to people with bad credit. Once you are approved, pay off the trade lines on time in order to help your credit rise each month. Begin to use any old credit cards that you have stopped using in order to show that you are currently responsible.
Pay off debt fast
There is nothing that creditors like better than seeing other credit lines that have been paid off in a quick manner. If you can get a small bad credit loan, then pay it off in a short frame of time, this will cause your credit to begin to increase. After paying trade lines off quickly a few times, you will increase your credit score and your credit worthiness.
Get a secure credit card
If you have not been able to get credit cards, ask your bank if you can get a secure credit card through them. Put up at least $1000 for the credit line, then charge your weekly groceries. Make sure that you use the credit card and carry a very small balance, but pay the card off monthly. After less than a year, you may have turned your credit around from bad to good.