Just face it. You are a spendthrift. Your credit record is poor. You have missed payments. You have also filled in a lot of loan applications. Is all this a crime? No. You are no different from a lot of other people.
Some would suggest that you need to transform your thinking so that you change your spending habit. Sure, change yourself, if only you can. But, this article is not intended to change your nature. In most cases, one s nature can t be changed.
But because of your spending habits, your poor rating is hurting you badly. You are really desperate to improve your rating, and fast. I am going to show you how you can fool the credit rating agencies into thinking you re becoming credit worthy. Just follow these 7 tips religiously, only for the next 90 days. (Sure, you can continue to follow these even after 90 days, if only you can.)
1. Stay Within A Budget
For just the next 90 days, religiously stick to a budget. Regulate your expenditure, week by week. Don t buy anything you don t really need. Do this only for the next 90 days till your rating improves.
2. Keep Your Payment History In Check
Your credit card payment history has impacted your credit rating adversely, right? For the next 90 days, only buy things you need with your cards and repay card debts on time.
You draw the attention of the credit bureau when you own more than two to four cards. Rather than have many cards with large unpaid balances on each, take a low interest loan to pay off some of them. Hold on to older cards which count for more points when your rating improves.
3. Make Payments On Time
Only for the next 90 days, don t wait till the last moment to pay off loans or bills shown on your credit report. Even if there s a grace period offered the loan will still appear on the report, thereby damaging your score. Fool the rating agencies by paying ahead of time.
4. Don t Restrict Payments To The Minimum Allowable
Another way of fooling the raters is to pay more than the minimum allowed. That way, you save interest and owe less. Make sure your card balance is well within the limit during the next 90 days.
5. Be Wary Of Consolidating Debts
The surest way to alert the credit bureau that you have a problem paying your debts is to keep applying for loans, to use to wipe out older ones. They get another warning sign when you get new cards frequently, tempted by offers. Do debt consolidation selectively, and only as a repair measure, for the next 90 days. Even if you are simply checking out on the best offers, never give out your name and address, if you can avoid it.
6. Beat Them To The Draw
If you have missed a payment, talk to them and explain before they set collection agencies after you, which would damage your rating like nothing else.
When you talk, you can negotiate better if you have something to offer. Assist them in devising a new payment plan. Given a choice, opt for a longer payment period if the lower instalment will make it more affordable for you, while telling them you intend to repay.
7. Get Errors Rectified
Sometimes there are errors on your credit report. If these are not corrected in time, they hurt your credit score. Follow up with the credit bureau to insure that such errors no longer appear on your credit report. You might have to convince them about the error, as people at the bureau may not always agree with you about the error.
Append your explanation to your report. Take care, however, to steer clear in your comments of finding fault with anyone. Always appear to assume that any errors could have been inadvertent.
Once the plan is agreed on, request that your debt not be reported to the credit bureau. If your payment record on the amended plan is good, they are likely to concede to your request.
Do all this only for the next 90 days, and savor the feeling of power and confidence it will give you.
If you require a still higher rating, perhaps you may have to extend this 90 day period to 180 days or more
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