Maybe you got laid off, fired, spent too much, or just forgot to pay your bills—whatever the reason for your bad credit, chances are you are trying to figure out how to erase bad credit and usher in good.
There are many suggestions on how to erase bad credit, and most of them involve punishing you for messing up in the first place. Bad credit is a problem that can be fixed, but it just take a bit of work and sacrifice.
Here are some guidelines that go above and beyond all the standard tips on how to erase bad credit:
1. Use what credit you have left:
If you are the victim of bad credit, make sure you try and retain what little you have left. This will be an important step in learning to erase bad credit. Creditors like to see that you can pay your bills on time and are hesitant to give credit to anybody who can’t. Make use of any open accounts you still have and get in the habit of paying those regularly. It won’t happen overnight, but this will help you erase bad credit over time by being the first step to your fresh start.
2. Track Your Score:
Everyone knows that they are entitled to an annual credit report free of charge from the government. What many people don’t know is this report has no indication of score. While your credit score is not everything, it is a good indication of the overall health of your credit and gives you a statistical approach to monitoring your progress to erase bad credit.
Companies like Citi Bank and Discover offer credit monitoring services for around $7 per month. These are good tools to use when trying to erase bad credit because they come with they will show you your score and how it has changed over time. In addition to that, Citi Bank offers a wonder tool that allows you to create a custom scenario involving your credit such as paying off all your bills, opening a new account, or defaulting on a loan. This allows you to plan the steps needed to erase bad credit from your file and shows you what you can expect from each step.
3. Open accounts:
When you are trying to erase bad credit, most people would say this is not the time to attempt to open accounts as each one of these inquires hurts your score. Contrary to popular opinion, this is the perfect time to open new accounts (within reason).
Make sure when you consider opening an account you judge the difficulty of getting approved so you can start using it to build credit. Cards like American Express seldom approve people trying to erase bad credit. Capitol One has a decent selection for people trying to erase bad credit.
As a last resort, you can opt for cards targeting people trying to erase bad credit. These cards typically have higher interest and fees, but if all else fails, they are a good way to reestablish yourself.
Along those lines, you might also shop around for auto dealers that finance in house and will guarantee your credit will be approved. When shopping for used cars for sale in Oklahoma City, be sure to look for a reputable dealership with a wide variety to fit your needs, budget, and make sure to ask about the terms of the finance contract.
There are ways to erase bad credit without completely denying yourself. While these rules may not bring your credit back where it was in a short amount of time, they will allow you to continue buying the things you want and enjoying your life—all while trying to erase bad credit.