I have been asked that question many, many times. I always answer that question with question. Do you pay your bills on time and in full? Do you have a budget and do you follow it? The answer I get back generally is no. Guess what, that is your problem.

Paying your bills on time and in full is how your creditors respond to the credit bureaus. If you make a late payment or only a partial payment, your creditor reports that to the credit bureaus. This information makes up 1/3 of your credit score. So if you start paying your bills on time and in full you will begin to improve 1/3 of your score right away. Late payments are reported from 24-48 months depending on the bureau. You might even be able to discuss with your creditors about re-aging your account. This means that you have to make so many payments on time (and in full) and if you keep that agreement, they will change the reporting to show that you have always paid on time. This will remove your late payments and immediately improve your credit score.

Setting up a budget is completely the cornerstone of good financial management. If you have planned on all of your expenses and found ways to cut them you are on the right path. In fact, finding ways to cut your expenses is essential in reducing your debt. Businesses are known for downsizing and cutting back. You need to think of your home as a business. By doing this, you will have the right attitude for saving money.

If you want to see your credit score rise, then follow those two tips. Your score will begin to rise. Review your credit history report and dispute any errors. That will help your score rise. If you have bad credit, then by following the first two tips, your score will start rising and all of your bad credit will drop off your credit within seven years. Most of the negative information reports for only seven years and each year counts less and less to your credit score. Good credit is within your grasp if you are willing to reach out and take it. If you need help in correcting your errors hire a professional. A legitimate Credit Repair Company can help you dispute those items that are reporting incorrectly. They will only dispute what you tell them that are reporting inaccurately. They will continue to dispute that item until you tell them to stop.

Don’t be afraid of having bad credit as it can be repaired. Dedication is necessary to make the changes you need to have good credit. Bad habits are hard to break but not impossible.  Take the time to dedicate yourself to having good credit and you will be surprised what you can do.

This entry was posted on Wednesday, December 23rd, 2009 at 5:27 am and is filed under Consumer Rights, Credit Repair, Debt, Your Credit. You can follow this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.