The credit report can go bad because of several reasons. One of the main reasons is losing job or a regular source of income. In order to improve one’s report most of us take help of some reputed credit repair service. There are other steps which an individual can take in order to ensure a better credit. One must always remember that improving a credit score takes time as well as patience.
There are a few assured steps which can help a person in improving his credit score.
- Before taking any step a person must get his credit report from all the three major credit bureaus Experian, Equifax and Trans Union. It is possible to get one free copy of report every year.
- If you are finding it difficult to repay your debts get in touch with your creditors. This is the only way in which you can work out a payment plan which will suit your pocket. It sends out a message to the creditors that you are willing to pay the money that you owe them.
- Tax liens and bankruptcy leave a major impact on the report. Hence, it should be avoided at all cost. A bankruptcy stays on the credit report for at least 10 years where as a tax lien would remain for 7 years.
- You must make it a point to pay your bills on time. This has a major impact on improving one’s credit report. In case you are going to be late for your payment then inform your creditors beforehand.
- One must reduce the total debt amount. A bad credit happens not only because of late payments but also because of too much debt on your income.