So you've had a tough time paying the bills lately and your credit rating has suffered.
But don't panic.
Even the worst credit mistakes can be fixed.
It just takes some time and effort.
You can get yourself back on track by following these 5 steps to improve your credit rating.
1.
Pay your bills on time.
This can be tougher than it sounds when you're living paycheck to paycheck, but it's perhaps the most important thing you can do to keep your credit strong.
Even if you can only afford the minimum payment for awhile, it's vital to avoid late or missed payments.
2.
Don't close old accounts that are paid off.
Part of your credit score is based on the ratio of your total debt compared to your credit available.
Closing old accounts will reduce your available credit and your credit score may suffer.
3.
Order copies of your credit report from Equifax, Experian, and Trans Union.
This is such a simple step, but many people never do it.
If you're going to have any hope of improving your credit, you need to know what you're up against.
4.
Dispute inaccuracies.
Review your credit report carefully to spot any inaccurate or outdated information.
If you see something that doesn't look right, question it.
You should do this in writing by contacting both the credit agency and the institution that reported the incorrect information.
This process can be time-consuming and requires a good deal of follow up.
You may want to consider hiring experienced credit repair lawyers to help you.
5.
Speaking of credit repair specialists, you must be extremely careful who you choose.
There are a lot of scammers out there looking to cheat you out of your money.
Make sure you choose a legitimate and reputable firm to avoid being ripped off.