Just because your credit score has taken some blows over the years does not mean you should give up all hope.  In fact, you’re not alone, many people are in the same situation as you the only difference is that some have accepted poor credit fate while others are forging ahead.  If you plan on being the latter, read on.

Bad credit does not have to ruin your life.  There are many tactics you can (easily!) take on that, slowly, but surely, will dig you out of your bad credit hole.  Here are 5 strategies you can start exploring today…

Make Your List and Check It Twice

Before you start working on enhancing your credit score, it is important to deal with the current issues at hand.  The first and arguably most important step in throwing you score a lifesaver is to review your reports.

Outdate information and inapplicable charges may be weighting your already flailing score down.  Reporting and resolving these issues can usually be accomplished in one month’s time.  Start here with this simple step and lift any unnecessary weight off of your score from the get-go.

Set and Stick to Invisible Boundaries

Just because you are awarded a certain credit limit does not mean by any means that you should push it to the limit.  In fact, it is advised (for the sake of your score) to utilize less that 40% of your available credit.

Regardless of on-time, consistent purchases, maxing out your credit cards will hurt your score.  You are actually better off utilizing multiple cards (under 40% of available credit) than maxing out only one.

Consistently Chip Away

When it comes to negative blemishes on a credit score, all to often the blame is to be placed on late and delinquent payments.  There is no exception or alteration for this one: pay your minimum balance on time, every month.

Defaulting on a credit card is a dooms day request for your score.  Even if you can only afford the bare minimum and will have to face the wrath of interest rates, staying consistent will keep you in good standing and save you from further damage being done.

In a worst-case scenario, call you creditor directly.  By being up front and honest about your current financial situation you might be able to work out a compromise (like multiple smaller payments each period) that satisfy both their repayment policy and your current cash flow needs.

Consider a Loan

Consistent repayments will improve your credit score and show that you can handle money.  Consider taking out a loan for this exact purpose, to demonstrate your ability to handle credit and in turn, to give your score an overall boost.

If this sounds like a good idea to you don’t just dive right in.  You first need to get informed, understand the qualifications and stipulations of any loan you take out and consider the future that you hope to build with this particular lender.  In turn, shopping your credit score around to potential lenders can kill your score.  Consider going with a direct lender over a broker for a one-time review rather than multiple runs of your score.

What tips can you share for saving a flailing credit score?

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