What to do When Your Credit Report Has Hit Rock Bottom
It may sound cliché, but trying to salvage a dismal credit report, while difficult, is not impossible. All it
takes is some responsibility and the conscious effort to work towards fixing your finances with good
Working towards a spotless credit report is not easy—but there are steps, simple ones which can pave
the way for higher credit scores and a spotless record—that you can work on already today.
How to take care of a bad credit report:
1. Start by monitoring credit report errors
Errors and inaccuracies aren’t uncommon for any document; and this holds true for your credit statement
as well. You can request for your free credit report from the three credit reporting agencies and once you
have received your your file, sit down to carefully monitor and review it for outdated personal information,
mistaken or fraudulent accounts and inaccurate account details. In case of errors, you can get it corrected
by raising your concern to bureaus in writing.
2. Organize and log your debts
The easiest way to keep track of your credit and who you owe is to review your credit report against a
personal log of your finances. It helps to jot them down following these categories:
a. Now: Debts whose due dates have already passed and are already in danger of being
considered delinquent, which should be given immediate attention.
b. Later: Bills that allow you to pay for the minimum credit balance.
c. On-going: Bills that arrive consistently, which you should take care of not being delinquent on
payments, this includes mortgages and auto loans, which will reflect on your payment history
and boost your credit score.
3. Clean up old accounts.
While not applicable in all cases, sometimes, it is good idea to close old credit card accounts. For
example, an idle account, which still charges an annual fee, should be closed. On other hand, closing
your oldest account is not wise idea to do as it can harm your credit score.
4. Begin fresh with a secure credit card.
After removing existing errors or inconsistencies from your credit report, start rebuilding your financial
reputation. You can begin with a secure credit card and ensure that you are able to pay your bills on time
so you can establish a perfectly managed financial credit history.