If you have bad credit, then it can feel like it’s negatively impacting every area of your life. Not only are you going to pay more to borrow money, but you’re also going to struggle to obtain basic services like broadband, or even be prohibited from certain jobs as described on CNNMoney.com. It’s therefore easy to understand why people with bad credit are determined to do all they can to fix the problem.
In a perfect world, fixing your credit score would be delightfully simple. A few steps taken, a little financial prudence, and you’d be set — but the reality is far different. If you find yourself in the position of trying to improve your score but aren’t seeing results, it might be worth perusing the possible reasons for your stall…
1) You Don’t Really Know What You’re Doing
Credit is a very complicated thing. If you don’t truly understand all the different factors that are taken into account to give your total credit score, then you’re going to suffer difficulties when it comes to rectifying it. Sites like creditrepair.co are packed with information to help point you in the right direction and ensure that you’re not missing anything from your calculations.
Even if you have identified all the areas that will have an impact on your score, that still doesn’t mean you’re able to make enough of a difference. If your credit is really poor, or placing substantial limitations on your ability to enjoy life, then you might need to contact a professional to ensure that you’re on the right page.
2) You’ve Stopped Using Credit
Many people in the midst of credit repair efforts cut up their credit cards in a bid to avoid temptation. While that’s useful in some respects, it can have a bad impact on your credit score. Your score is not just calculated on the amount of debt you owe and your income; lenders also want to know if you’re responsible with money. So if you stop using credit — and thus aren’t displaying a history of being a responsible borrower – then that’s going to go against you.
Try and keep one card open for use for small amounts every month, which you then pay off in full so you don’t accrue any interest. This gives you a credit history, and also practice at not going into debt that you can’t afford to repay.
3) You’re Not Being Patient Enough
Repairing credit takes time; you’re not going to be able to make big changes and expect to see your score bounce back within a month. As a general rule, you need to give the process six months to take effect. If you’ve not crossed that point yet, then you’re not necessarily doing anything wrong — just try and be patient and wait for the numbers to increase.
If you do pass the six month period and your score still isn’t improving, then follow the other methods mentioned above.
If you eliminate the problems above and focus, in time, you should see your credit score bounce back to where you want it to be.