6 Tips for Bad Credit – Make it Better Fast with these Strategies

1. Don’t apply for too many loans, credit cards, or just to see if you can get a loan for something unimportant. First of all, having too many loans may mean that you actually use them and for no reason. Next thing you know, you can’t pay anything other than the minimum monthly payments and this is where the real trouble starts. Another reason to keep track of what loans you are applying for is that when you really do need a loan, you may have already ran your credit score into the ground. If you have bad credit and need a loan, especially a car loan in Chicago with bad credit, each inquiry can cost you several points off of your score.
2. Keep your older credit cards open. The length of your credit history can help you. The longer you have had credit, the more points you get. Again, keeping those balances in line will also keep your score high. Most banks are now requiring credit scores of at least 680 to get a good rate on a car loan or a mortgage.
3. Avoid late fees – pay on time. This seems like a no-brainer, but it is amazing how many people don’t worry about paying on time as long as they eventually pay. This is a sure fire way to never get a good score and even worse, when you do need a loan, the amount of credit you qualify for will be less than your current loan.  Why would a bank give you more car credit when you paid late on your first car loan? Pay everything on time.
4. Avoid interest charges on credit cards. Only use what you can pay off the next month and you will not only keep your score high, but keep your financial life in check. If you can’t pay the full balance, pay as much as you can.
   
5. Get a free annual credit report and make sure there are no mistakes. Mistakes happen and they could happen to your account. By checking your credit once a year, you should be able to stay ahead of any problems that arise.
6. Get a car loan. One of the best ways to get a good credit score and keep it high, is to get a car loan. Everyone needs a car, so get the best loan and pay it on time every month!