How to Improve Credit After Bad Credit Drops Off

If you took out credit cards and did not pay your bills, you might have a serious problem with your credit score. It is important because it dictates the loans and credit that you can get, which might be important for buying a house or helping your children with their tuition. Focusing on improving your credit can make a significant difference in the loans and credit that lenders might offer you.

Instructions

1

Pay every bill on time. Hopefully, chances are slim that you have credit card bills to pay because you threw your cards away. Focus on getting your rent, electric, cell phone, television and hospital bills paid on time. Being in the position that you are in is a difficult situation. It can only change if you fix the problems that got you there. If you struggle to pay your bills, you might have an income problem. An income problem is different from a debt problem. It means that you need to find a method to increase your household income by taking up part time jobs, freelancing, or working online.

2

Stay stable. According to the Gen X Finance article "15 Ways to Establish and Improve Your Credit History and FICO Score," if you want to be approved for a loan or credit, demonstrating that you think rationally and stay committed to the choices you make can help you. Having a job for several years can show that you are dedicated to the lifestyle you live and want to keep up with your responsibilities. Try not to move frequently either. It can look flaky to creditors who want to see some stability in your life.

3

Pull your credit score once a year to see whether there are issues you need to resolve. For instance, according to the Bank Rate article "Bump Up Your Credit Score in a Hurry," sometimes credit reports include accounts that you do not have, payments reported late that you paid on time, or debts older than seven to 10 years that should have been taken off of your report. Cleaning up these problems is important because your credit score can influence the interest rate that your future loans and credit cards get. Having false information on your credit score might cost you money for no reason. The Federal Trade Commission reports that AnnualCreditReport.com is the only government authorized source for your credit report. Using the website to pull your credit score once a year can perhaps help your credit score stay free from negative information.