Help to Clean Up My Credit

Cleaning up your credit demonstrates responsibility. Credit is important, especially if you want to buy a house or finance a car someday. Lenders base approvals and interest rates on your credit score, and getting favorable rates and terms requires a good credit history. Reverse a bad credit score and qualify for the best loan terms.

Missed and Late Payments

Paying credit card bills 30 days late not only trigger late fees, but creditors report lateness to the credit bureaus, and this information hurts your personal credit score. Clean up your credit fast by improving your payment history. Ways to improve your payment history include paying bills several days before the due date or paying online to avoid slowdowns with postal mail. Because timeliness makes up 35 percent of credit scoring, it's imperative to never miss a payment or send a late payment.

Carry Minimum Debt

Paying off your credit card debt completely can boost your low credit score. It's okay to use credit cards frequently to keep the account active. But instead of carrying huge balances from month to month, use credit sparingly and then pay off balances in full each month to maintain a high score. If dealing with high balances, start increasing your payments to bring down the outstanding principal.

Clean Up Your Credit Report

Clean up your credit by cleaning up your credit report. Some people never check their personal report, and inaccuracies or outdated information go unnoticed until they apply for financing. Checking reports at least once a year brings attention to creditor mistakes, and removing errors and mistakes can increase your score. Common mistakes made by creditors include updating reports with another person's negative information, such as collection accounts or late payments. And sometimes an unfamiliar account may appear on your report. Get your report free from Annual Credit Report.

Dealing With Creditors

Once you're on the right track to clean up your credit, defaulting on a loan or missing a payment can undo the progress you've made and lower your score. Speaking with creditors and lenders if experiencing financial hardship is key to staying on track and avoiding late payments. Lenders offer help when there's communication. For example, if you don't have money to pay a bill by the due date, call your creditor and explain your situation. Creditors may offer an extension without penalty or break up your payments. And depending on the creditor or lender, they may suspend your payment for one or more months without penalty.