Bad credit can be a really big problem for people, and it can make it hard for you to get ahead with everything you want to do in life. With bad credit, you can miss job opportunities, have difficulty finding housing, and struggle with getting any sort of bank account or credit card. 

So, it’s important to know what is necessary in order to get your credit repaired and back in order. What do you need to do in order to fix your bad credit? 

What is Considered to Be “Bad Credit?” 

There are 5 levels of credit score.

  • 800 to 850 – Exceptional
  • 740 to 799 – Very Good
  • 670 to 739 – Good
  • 580 to 699 – Fair
  • Below 579 – Poor

People with a credit score of 740 and higher often get the best interest rates. Most people at 600 and above can get a loan, but the interest rates will be much higher. When you get below 600 (and in some cases, even 650), you will have difficulty getting your hands on any type of loan. 

Try Some Short-Term Loans 

Sometimes, you just need to do something in order to encourage your credit score to increase. Small, short term loans that have a payoff date of 60 days or less can help you to do so. You can find instant approval direct lender installment loans online, and if you pay it off as you should, it can give you a bit of a boost when you need it.  

Double Check Your Credit Report

Your first task is to go ahead and check your credit report. You can ask for a detailed credit report from each of the three major reporting agencies once a year for free. Take the time to really dig through your credit report and see what it is that you’ve gotten penalties for. 

In some cases, there may be mistakes or things that just didn’t get removed for one reason or another. You can submit those mistakes to the credit bureaus and they can start the process of investigating those issues. If they also find that those were mistakes, they will remove them from your credit report and make the necessary adjustments to your score, which will raise it. 

Pay Your Bills on Time

Yes, your bills are associated with your credit score. If you’re not paying your bills on time, you’re going to get reported to the major credit agencies. Whether it’s your cell phone or your gas bill, you need to keep up with it in order to keep your credit score stable. 

If you’re behind on bills, you can consider a small loan (as mentioned earlier in this article), or you can talk to your bill company about a payment plan. Many of these companies will work with in order to sort out a plan that fits your budget and catches you up on what you owe them. 

Pay Down Some of Your Debt

Paying down your debt may seem like an insurmountable challenge. Thankfully, there are a number of strategies that can help you to pay down your debt effectively. Put together the plan that works best for your budget and make sure that you stick to it. 

You don’t want to pay your debt down too quickly, as that can also hurt your credit score in certain instances. Credit agencies also look at how much debt you hold, and if that changes too drastically too quickly, it can cancel out any positive marks you get from the catchup process. 

Work With Collections Agencies to Get Things Sorted Out

If you have any past bills in collections, now is the time to talk to collection agencies. Many times, these agencies pay a reduced cost in order to get their hands on bills and such that are past due. If you call them, you can often negotiate a monthly payment. If you have the financial ability, you may also be able to negotiate a “payoff” amount that is much less than what you originally owed. 

Be Patient – It Takes Time! 

All in all, there are a lot of different things that you can do in order to get your credit score under control. Whether you’re just looking to get into the next credit score range so that you can reduce interest rates on future loans, or you’re in triage mode for a really bad credit score, you have options. But, you need to be patient and persistent with the process.