Life has its ups and downs, and sometimes your credit score can take a hit. Many people experience this, and it’s important to move past excuses and focus on fixing your credit. In this post, we’ll show you a simple plan to help you get your credit score back on track.

Step 1: Check Your Situation

First, get a copy of your credit reports and see where you stand. Look for:

• Charge-Off Accounts: How many accounts have been written off by creditors?

Note: A charge-off means the creditor has given up on collecting the debt, but you still owe the money.

• Late Payments: Which accounts are late but not more than 90 days overdue?
• Good Standing Accounts: Which accounts are open with no late payments?

Make a chart to see everything clearly.

Step 2: Save What You Can

Now that you know your situation, take steps to save what you can. If an account is 90 days late or more, the damage to your credit score is already done.

For accounts that are 90 days late, you might want to settle for less than the full amount. Paying in full won’t help your credit score now. But you might want to save a 90-day late account if:

• It’s your oldest credit card with a lot of history.
• You can make a deal to remove the late marks from your credit report.

For accounts less than 90 days late or with no late payments, keep them in good standing. This will help rebuild your credit faster.

Step 3: Take Extra Steps

To rebuild your credit score, keep several accounts in good standing with on-time payments. Aim to have at least five accounts with timely payments each month. If you don’t have five accounts, consider getting new credit cards, especially secured credit cards if your credit score is low.

Getting New Credit Cards

With a low credit score, it might be hard to get approved for regular credit cards. Try applying for secured credit cards, which are easier to get. For more info on secured credit cards and good options, read this post on secured credit cards.

Watch Out for Bad Credit Cards

Some companies offer credit cards for bad credit, but these often come with high fees and bad customer service. Avoid these cards to keep from adding more financial stress and hurting your credit further.

Key Takeaways

1. Check Your Credit: Get your credit reports and find out what’s good, what’s late, and what’s been charged off. This helps you see what needs fixing.
2. Save What You Can: Focus on keeping accounts less than 90 days late and negotiating better terms on old accounts. This keeps things from getting worse.
3. Keep Positive Accounts: Make sure you have at least five accounts in good standing with on-time payments. This is key to rebuilding your credit.
4. Get Secured Credit Cards: If you can’t get regular credit cards, go for secured credit cards to build a good payment history.
5. Avoid Bad Credit Cards: Stay away from credit cards with high fees and bad terms. They can make your situation worse.

By following these steps, you can start fixing your credit score and move toward a better financial future.