Having a bad credit is an unfortunate situation because you cannot buy a new home or car if you want to. Being in this kind of situation can also affect your application for employment, financing, loans and others. Therefore, it is very important to get you credit score fixed or raised. To guide you along the process, here are some steps on how to improve credit score in 6 months.

The first thing to do is to get a record of your credit situation. You may order a free credit report from one of the three nationwide credit bureaus, namely Equifax, Trans Union and Experian. Once you receive your credit report, read and check it carefully. If you see erroneous items, take note of them first. You should also take note of the different items which you do not recognize. Secondly, pay all the loans and credit lines that have an outstanding balance. You must pay more than the required amount so that you can pay the whole outstanding balance at a faster pace. The faster you pay your balances, the faster will be its effect on your credit score.

Decrease the amount of unsecured debt first before paying for your secured debt. If you no longer have an auto loan or mortgage, you can already address your secured debts. As a matter of fact, having some secured debt is desirable for many potential lenders. Next, go back to the errors and discrepancies that you have seen in your credit report. It is now time for you to contact the credit bureaus who issued your credit report and clarify the different discrepancies that you have seen. It would be better to put your thoughts in writing so that the bureau can understand better what you are saying. Encircle or emphasize the items that you think are erroneous and attach the credit report, together with other supporting documents to your letter. In addition to these, ask for a correction of the items which you think is erroneous.

Save money in order to pay your debts and balances in a shorter period of time. It is very important for you to pay for these debts so that their amount will not continue to increase because of the interest. Not paying for your debts will mean more negative marks in your credit report so you have to observe discipline in paying your debts and balances on time.

Lastly, have an open communication with your lenders. Being able to communicate with your lenders efficiently will prevent misunderstanding most especially when you have missed payment. You must be able to pay your balances every month and never miss a payment due date. If you are having a hard time in paying for your balances on time, talk to the customer service and let them know of your situation. Your lenders or counselors may even come up with a payment plan for you to follow so as to lighten your financial load every month. As long as you keep paying for your debts and having discipline in spending money, your credit score will have a great improvement.

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Category: Finances
Keywords: credit score, improve credit score, improve my credit score in 6 months, fix credit score