Do You Know Your Credit Score

Category: Finance, Credit.

Do you know it s very easy to fix your bad credit through few easy to follow steps?

Have you got your credit report? But before I share with you these steps, let me ask you how do you know that you have bad credit score. Do you know your credit score? If you haven t got the credit report yet, you should immediately get one. If you have all this information, then you are on the right track. You can get information from any website on how to get your credit report.

The suggested steps are as follow: Review your credit report carefully and identify the problem areas. So I consider that now you have got your credit report and you are ready for action to fix your bad credit. Once you identify the problem areas, check which one is more critical. If it is due to any other reason like that old defaulted loan or any other such issue, at least now you know the real issue. In majority cases I have seen that credit card issues are more prominent. Remember you can t find the solution if you don t know the problem.

Are you asking what is this? Do you know your balance sheet? Do you know your total income every month? Are you spending less than what you earning? Do you know your expenses? If you don t have this snapshot of your financial life, then you should create one.

Start creating a budget every month if you don t have one. Use this to analyze where you need to cut your expenses. Identify areas where you can save money or reduce your expenses. Review your all outstanding debts and consolidate them to one loan. Once you identify those areas, divert that money towards paying your outstanding debts quickly. Always pay high interest debts or loans first until these are paid in full.

If you have number of credit cards, then cut high interest credit cards instead of canceling them. Use any surplus cash to pay the next highest debt. By cutting those plastic cards, you will not use them but at the same time you will have credit in place on your credit history. If you have too many credit cards, you should review all the credit cards and decide which ones you want to cancel. Check out your garage and other household items and see if you can set up a garage sale and use this cash to pay back your debt. You should always inform them that you want to cancel the card. 1If you are not disciplined and use credit cards with no control, then you should opt for prepaid credit cards or secured credit cards.

There are many other steps which can be used to repair bad credit and you can learn all about those by educating yourself. This will ensure that you don t cross your expenses. As I always say that education is the first step towards any solution so please do share this article with your relatives and friends. Wishing you all the success in fixing your bad credit, Let us build a better community by helping others.