0007 - Debt Related Queston: Bankruptcy Question # 0007

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QUESTION #0007:

How do I improve my credit rating?



ANSWER:

The first step is to ensure that the information in your credit report is accurate. After that, the only way to improve your credit report is to use credit wisely. Wise use of credit includes;

  • Do not apply for a myriad of credit sources; limit yourself to two credit cards with small credit limits
  • Pay your bills on time. Work with your creditors to allow time to pass to show that your payment habits have improved.
  • Be prepared to show stability of employment and residence. Creditors want to know that you have a reliable source of income and that they can easily contact you if necessary.
  • Get a secured credit card and pay the balance off every month.
  • Keep an emergency store of cash to be used to pay your living expenses if something goes seriously wrong with your income sources.
  • Communication. If you run into problems, talk to your creditors and tell them that you intend to pay your bills, but you need a bit of leeway.