Restoring a good credit rating may require work, but you can do it. The first step you need to take is to request and analyze your credit report. Dispute inaccurate information and develop a plan to pay your debts, including old bills. Avoid using credit while you are trying to resolve your debt. After you have solved your problems or nearly done so, try to access credit with a person who has an excellent credit score.
Many people are aware that they have poor credit ratings because the response to their credit applications are rejections or because they know that they have not properly met their obligations. What many do not know is what their exact problems are. If you are trying to establish a good credit rating, the first thing that you need to do is to get copies of your credit report.
Take the time to closely analyze your credit report and to confirm the information that it contains. Any inaccurate information should be immediately disputed. Having inaccuracies removed or corrected is one way to begin restoring your good credit rating while you address problems that you are responsible for.
Rebuilding a good credit rating will require you to pay your bills. It may not be possible to make all payments in full all of the time, especially if you are trying to eliminate old bills. You should, however, make every effort possible to pay something on all of your obligations, even if you have to make some payments that are only a fraction of the amount due.
Go beyond minimum payments on credit cards when possible. Carrying balances can negatively impact your credit score. If you have multiple credit cards with balances, try to pay each off as soon as possible. You may need to focus on them one at a time, but every time you achieve a zero balance you will be marching toward your goal. You should also try to negotiate new terms when it is possible, which can help you to eliminate your debt faster.
You need to stop charging items while you are trying to restore a good credit rating. You will need to live on a cash-purchase policy. If you cannot buy something outright, you should not buy it at all, unless it is an emergency. Definitely do not consider trying to get any new credit cards or credit accounts during this time.
Once you have made significant progress in reducing your debt, try to find a person with an excellent credit score. If you can get the individual to agree, open a credit account with her or get her to add you to one of her current accounts. Allow her to use and maintain the account, and you merely reap the benefits from her responsibility. For example, if your mother always pays all bills in full on time and she is planning to get a store account or a loan, try to get on the account with her.