10 Ways to Protect and Fix your Credit Rating

by RobertKeith

Having a good credit rating is an important strength to have in life.

It can make huge goals in life like home ownership more easily reachable. It can also make it easier for you to land a job or make an investment. It's important to know how to protect and improve your credit to avoid problems and correct them when your credit rating drops low. The following are ten ways from Private Funding House to protect and fix your credit rating:

Inspect your credit reports and have any errors corrected

A lot of people have credit reports that show incorrect information. It's always a good idea to look up your report to make sure that everything on it is accurate. One of the first things you want to do if your struggling to improve your credit is make sure that your not unfairly dealing with negative marks on your report that shouldn't be there. 

Avoid submitting any payments late or missing payments

Many consumers have low credit scores because they have not always been on time with their payments. If you're trying to protect or improve your credit score, you need to start being very careful to always get all of your payments in on it. If it helps, you can set up email or text alerts for when your payments are due so that you are less likely to miss them. 

Protect your Credit Score
Protect your Credit Score

Bring down your debt load

If you're currently using a large portion of the credit that's available to you, it's going to negatively impact your credit score. You may be able to boost your credit score if you pay down some of your balances on your credit cards and pay off some other debts like your car loan. 

Make sure you keep accounts that you've had a long time open

A lot of consumers make the mistake of closing old accounts that they're not using when they're trying to improve their credit score. In fact, having accounts that have been open a long time and are still in good standing is important to getting the best possible score. 

Find the exact problems and address them

Looking at your credit report if you know that you have poor credit can give you valuable insights into why your credit is not doing so well. You need to find out the reasons for why your credit is bad to understand how you can approve it. Study your report and address the causes of any bad marks to effectively make improvements. 

Open up a secured credit account if that's all that's available to you

If your credit has been so badly damaged that you have no credit accounts remaining and you can't be approved for an unsecured credit card, you can still get out a secured credit card to start making improvements. With a secured credit card, you will more easily be approved and can eventually graduate up to an unsecured card if you make payments on time for a while. Providers of secured credit cards will report positive information to the credit bureaus, so these cards can help you build credit. 

Avoid applying to too many lenders

When you apply for credit, it can slightly lower your score. Only apply for credit when it's absolutely necessary to protect your credit rating. 

Get in touch with creditors with whom you have accounts in collections and negotiate pay-offs

If you have a poor credit score, you may have accounts in collections. In many cases, you can negotiate pay offs so that you minimize the impact that these accounts have on your score. 

Make sure no one else has the power to negatively impact your credit

If you are married, you may want to separate credit accounts if you cannot trust your spouse to handle them wisely. 

Try to avoid bankruptcy if you can

One of the number one rules when it comes to protecting and improving your credit is to avoid bankruptcy. Bankruptcy will make for a highly negative mark on your credit report that will take a long time to recover from.

Updated: 05/18/2018, RobertKeith
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