If you stay up nights worrying about how you’ll pay off your debts and improve your credit score, stop worrying and start taking action. It won’t be easy and it will take some time. It took awhile for you to hurt your scores so it will take a while to improve those scores but you can do it.
Don’t open any new credit. The best way to improve your credit score and get out of debt is to avoid taking out any more loans or opening any more credit card accounts. Since everywhere you turn you’re bombarded with applications for credit, it’s difficult to say no, especially if you are having trouble living on your income alone. Yet it’s important that when you are trying to dig out of debt, you don’t dig your hole any deeper. You can get your name taken off mailing lists by going to the direct marketing association website. For one dollar, you can enter your name and address and they will remove your name from all the mailing lists that go out to the major mailers each year. It doesn’t hurt the environment either to reduce your junk mail delivered to your home.
Be patient. Recognize that improving your credit score and reducing your debt can take some time. There are plenty of scams out there that promise to give you a brand new credit history overnight. Usually this is not only impossible but illegal. You can take small steps that add up quickly over several weeks or several months, and by following the tips above you can start to see an improvement in your credit score in as little as two months. Remember that most lenders report to the credit bureaus on a thirty day basis but it can take up to three months for changes to appear on your credit report. By being patient and focused on your goal, you will find that within six months you will start to see real changes and an overall improvement in your financial foundation.
Cut up your credit cards. This will eliminate further purchases and impulse buys, altogether. (When you think about it logically, you’ll realize that you really don’t need a new laptop or designer spring wardrobe.)
Many people feel as though they need to retain one, ‘in case of emergency’ credit card. This is acceptable if you have the willpower to use it ONLY in an emergency situation. If possible, this same card should have a small credit limit, of roughly $250 and the lowest interest rate you qualify for.