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improve a bad credit report
Do you pay your bills late and submit the minimum payment or less on credit card balances?
Have you made it a habit to max out credit cards?
Are you relying on payday loans just to survive?
You aren’t alone. But don’t be intimidated or overwhelmed if you need to improve a bad credit report. Instead, think back to your college days (and the time when your unhealthy credit practices may have started).
Approach cleaning up a poor report just as you did your educational career:
Hard work → high grade point average → dream job
Follow that formula to clean up poor credit:
Hard work → high credit score → dream home and car
GPA Credit Score
3.8 760
Just as a college GPA is a cumulative measurement of how well you perform in all of your classes, your credit score is a cumulative measurement that can fluctuate and is based on multiple factors:
• Fewer overdue payments = higher credit score
• More loans paid off = higher credit score
• Longer credit history = higher credit score
Improve a bad credit report, just like a leaky roof.
What’s the first step to repairing a hole in a roof?
Finding out how big the hole is.
This same logic applies if you find yourself needing to improve a bad credit report. The first step in developing a plan to improve your credit is determining just how bad it has become.
Most consumers who have experienced their credit rating fall did not allow this to happen intentionally. They simply spent money out of an immediate need, like with a leaky roof, and may not have had the luxury of developing a plan. But this lack of a planning, for whatever reason, is what has led nearly all consumers who suffer from bad credit to where they are today.
If you are a consumer currently experiencing the effects that bad credit can have on your life, you may wish each day that you could go back and develop a plan that would have kept you out of this mess. You can’t. But you can develop a plan that will help you recover and improve your report.