Don't worry! Professor Tate Answers:
Having a poor credit score will cripple you in many ways, from not being able to get credit when necessary, to being stopped from making important purchases. But, you can often improve your credit score in as little as one to two months. Here are some tips to help you get started.
Apply for a Credit Card
If you have poor credit history, you should obtain a credit card if you do not yet have one. This will ensure that you have somewhere to begin. It gives you a place to start to build good credit, if yours is not in a good state.
Stop Using Your Credit Cards
Although this step may seem to contradict the previous one, it falls hand in hand with it. Whether you just obtained a new credit card, or are working with one you have had long term, stop spending money. If you have a poor credit score, it might be indicating that you have trouble with your spending habits. In this case, you still want your credit card in order to build credit, but you need a lot of self-control so that your history can take a turn for the better. Consider storing your credit card in your night table so that you will not have easy access to it.
When you are the proud holder of a credit card, pay your bills every month, and in full if possible. If you have debt that has piled up, then do your best to pay it back as quickly as possible. This goes for all your bills. Even if you pay it back at a slow, steady pace, you will eventually get there.
Keep Your Cards Active
Don’t be tempted to close your credit card accounts. Credit cards can get people into trouble, but when handled correctly they can be your best friend. Remember that having a credit card long term shows stability and will raise your credit score. Avoid the temptation to habitually shut down one credit card after opening another one, as this will harm rather than help your credit score.
You should not use more than 30% of your credit card limit on a monthly basis. Even if you are regularly paying it back in full, the habit of spending more than this percentage causes you to appear as a big spender. This will most certainly hurt your credit score.
This is a little trick that not many people know about. If you have hit a rough patch and been a little irresponsible with your credit for a short period of time, do your best to correct the situation. When you have shown effort to correct it, contact your credit card company to see if they would consider clearing your poor credit history with them.
You asked, now you know!
-Professor Reel S. Tate