Do’s And Don’ts When You Have Poor Credit Score!

What happens if you have a poor credit score? It costs you much as brings a lot of stress. However, you don’t have to get panicky. By resorting to timely right action, you will be able to increase the credit score and bring it to the accepted level. As a first step towards this, all you have to do is to get a copy of your credit report – the latest one – from a credit bureau. There is no fee charged. Go through the report and if there are any mistakes in the report, you should get it rectified, at once, as otherwise the report will have adverse impact.

Avoid using credit cards for impulsive shopping

If you are a habitual user of the credit cards, and if you have more than one credit card, it is time apply brakes for their use. Do not indulge in unnecessary shopping spree. In the event of any necessity where you will have no other option than using the credit card, you take the opportunity of meeting the credit card provider and place before him the actual facts. He may, perhaps, be able to offer suggestions, implementing which may not affect the credit score. Your ‘twin action’ I.e. settling the existing outstanding and refrain from using credit cards, will most certainly go to improve your credit score.

You should first come out of the ‘fear complex’ that your credit can never be improved and that it will remain ‘bad’ forever. It is not at all like that. Your credit can be improved provided you start making sincere efforts in this direction. There is no need for you to hesitate – see that the existing accounts are closed by settling hem.  Once this is done, your position, finance wise, will be a much improved one. Some are not inclined to do this, because they think a ‘settlement arrangement’ will be looked down by others. But then this settlement Is resorted to only when you are unable to meet your commitments because of your severe financial sufferings.

Your credit score is more or less like a mirror reflecting your image. It will convey each and every detail relating to your personal finance – like the date of your previous settlement of bills, if you have settled them in full or for lesser amounts. If the settlement was for a lesser amount, that means you are keen to start all over from the beginning, which you have been wishing for to happen. You have, in fact, repaid less than what you had borrowed. This action will help in getting the credit card debt eliminated much soon; in fact, much earlier than what it would have taken in the normal course.

By resorting to such methods of settlements, you will not be able to get the most valued ‘three digit’ credit score. However, once you start rehabilitating yourself, you will realize your financial position becomes better. With this, your credit score too will move upward in the graph. And, needless to say, settling the creditors, for lesser amounts, mean you have ‘additional income’ in your hands. With some extra money, you will start feeling happy. This, without doubt, brings you mental peace too in that you are assured you will be back to a decent level of financial standing.