Help! I Need to Clean My Credit Up!
Have you just applied for a loan and were denied? Are you thinking of buying a home in the near future? Do you have your eye on a new car with a great price tag? If you answered yes to any of these questions, you might have a question of your own. How do I clean my credit up? You can’t change your low score overnight, but there are some steps you can take to get credit worthy scores.
First, you must know your exact credit scores. It is not enough to hear that your score is low from the loan specialist at the car dealership. There are three major companies that give credit scores in the range from 300 to 850. You will want to get your score from each of these agencies. The scores should be fairly close. If you see one is dramatically different, look closely at that credit report and compare it with the other two. Sometimes it can be just a simple error that is pulling down your score. You should be able to resolve mistakes by writing an explanation to that particular credit bureau. Be sure to check for errors on the other report as well if you don’t understand why your scores are so low. Once you determine there are no mistakes on any of your credit reports, it is time to repeat your new mantra, and say “I will clean my credit up!”
To get to your goal, start by paying down your credit card debt. You must always pay at least the minimum, and make certain your payment will arrive before the due date. Late payments will really drag down your score. Some financial gurus would tell you to try to pay more on the cards with the highest interest rates first. The other financial advisors think the psychological boost you get from paying off smaller balances in full is worth the extra interest you might end up paying on the higher rate cards. You will have to decide for yourself which method will have you saying, “I can clean my credit up!”
Once you pay off a card, cut it up so you don’t use it anymore. Don’t close the account as credit bureaus like to see that you have available credit that you are not using. If you follow these tips for handing your credit cards, you will be on your way to saying, “I did clean my credit up!”