If you have poor credit, then you may find it difficult to get approved for loans–especially those with reasonable interest rates. If you’re tired of your less-than-perfect credit score looming over your financial life, then you might be wondering what steps you can take to gradually increase your credit score over time. Aside from working with a professional credit repair service, there are some specific credit mistakes you can avoid making over the next few years to help salvage your credit.
Cancelling Credit Card Accounts
Misuse of credit cards is often what gets people into problems with their credit scores in the first place. As such, it makes sense that many people turn to cutting up their credit cards and cancelling their lines of credit in an effort to increase their scores. However, not using your lines and closing accounts can actually make things worse. Instead, the best thing you can do is scale down your use of credit cards to the point that you can pay off at least the minimum balance (if not the entire balance) with each bill.
Not Monitoring Your Credit Report
Believe it or not, credit reporting bureaus make mistakes on credit reports from time to time. As such, it’s up to you to monitor your credit and be on the lookout for mistakes. The best way to do this is to utilize a free credit monitoring service, which will alert you to any changes on your report as they happen. If you do run into any mistakes on your report, you can then file an official dispute with the reporting bureau to have them corrected.
Turning to Bankruptcy
Finally, don’t make the assumption that filing for bankruptcy will take care of all of your financial woes. In many cases, this couldn’t be further from the truth. Filing for chapter 7 or 11 bankruptcy should only be seen as a last resort–and you should never file without first consulting with a financial advisor. After all, a bankruptcy isn’t going to help your credit. It will actually have the opposite effect and result in a significant drop in your credit score.
As you can see, there are many mistakes that you’ll want to be careful to avoid as you work to increase your credit score. By doing so and by working with a professional credit repair company, you’ll be well on your way to a better score in no time. Talk to experts like Nationwide Credit Repairs for more information.