You might be a great business person with a thriving business model, but you can only do so much with a lot of past debt weighing you down, and trying to improve a credit score may be an unavoidable task. Less desirable credit scores can be a weight around a person's ankle. Since so much of what goes on today in the financial world is determined by a credit score number, it's extremely important to keep up on how to fix problems with a personal credit rating. When you need credit help, here are some ways to start clearing your name of any negative marks on your credit score.
1. Know Your Credit Report and Credit Number
The first thing that most people want to do to fix their credit score is to get a recent credit report. This can be harder than it sounds, since many free credit report setups come with significant liabilities for the consumer. Find a trusted company that will get you your credit report without adding a lot of extra fees or otherwise taking advantage of your business.
2. Pay off Past Judgments
One of the first ways to improve a credit score is to clear any open judgments against you. This means assessing unpaid debts that show up on your credit report and finding ways to resolve them.
3. Negotiate with Creditors
Those who are struggling under massive debt loads are often surprised to find that creditors of all kinds will usually make a deal in exchange for some partial payment of the existing debt. Talk to various creditors about what it will take to wipe negative marks off of a credit report, and start cleaning up your past to provide for a brighter future.
4. Find Ways to Establish Good Credit
As with many other kinds of similar systems, part of erasing bad credit is to replace it with good credit. Some finance experts recommend taking out a small line of credit or a credit card and paying it off regularly in order to build good credit. Utility bills can also provide good credit, but because of the way credit scores are reported to three separate national credit unions, utility bills alone may not be enough to get your credit score number where it needs to be. Financing a vehicle or taking out some other reasonable personal loan can be one of the keys to raising a person's credit score.
5. Be Selective about New Credit
Although as mentioned above, new lines of credit can be useful in improving a credit score, finance pros also warn of the possibility that filling out too many new credit applications can actually bring a score down. Knowing more about the precise metrics of the FICO credit score system will help consumers make the right choices to boost their credit score and get better loan offers from lenders.
6. Fix Credit Score Errors
Although a bad credit score is usually the result of delinquent payments, some people's credit scores have become worse simply through errors made on credit reporting. When you have access to your credit record, you can appeal many of the negative marks that are on it through the three main consumer credit agencies. Some consumers have found that this works to their advantage in efforts to improve an overall credit rating quickly.