If you have bad credit and dismiss it as no big deal you have no idea what you are setting yourself up for. Bad credit can cost you more then just loan approvals, it can cost you big money. Not only will you pay higher rates for any type of loan but now more then ever before insurance companies and employers look at credit scores as well. So losing your dream job or not being able to secure car insurance become very real possibilities. The good news is that with a little work and some simple steps you can be on the way to fixing your own credit. The next few paragraphs will deal with some simple proven methods that you can implement to repair your credit score and brighten your future.
Making on time mortgage payments will greatly enhance a credit score. One late mortgage payment can affect your credit score by as much as 90 points. Keeping your credit card balances to 30% or lower of the high credit limit is also ideal. With time and effort, you can raise your credit score.
If you have credit cards that are maxed out or close to the account limit you can easily call and ask for a credit line increase. As long as you have been a good paying customer many credit card companies are more then happy to extend you more credit. This method will help bring your balance to limit ratio back in line. However you must use self control so you do not over spend and max out your credit card again.
If you pay down your credit card balances to less than 50% of your loan limit, this can have a very positive and quick effect on your credit score.