7 Ways to Repair Your Credit Score Rating

Perhaps you have built up debts and feel there is no way out? If this refers to you probably you have some good credit. You need to be able to pay back your debts start repairing your credit score rating.

Your debt should never be more than a quarter of what you earn per year

Get a copy of your credit report You need to get your hands on your credit report before you can start repairing your credit history. This way you know what you're up against. It's no good guessing about what’s on there. You can order go online  and order all three reports for free. Check the report very carefully.

Record your income and expenses Find a good free finance software program just Google 'finance software' or set up a spreadsheet and remember to include ALL your income and expenses. Set yourself a budget and enter everything. This will let you see exactly where you are and if you're overspending at all. Don't forget to update it every week.

Your credibility is important When making any applications for credit applications ensure you use a permanent address and a landline telephone number to improve your chance of acceptance and repair your credit rating as it is noted as a sign of stability

Request a credit limit increase A good thing to remember is to call your credit card lender twice a year. Provided you have kept up to date with the minimum payments and are really using the credit card they will not refuse you more credit! You need to be able to afford the payments and pay on time. A great way to increase your credit score extremely easily.

Don't pay off your credit card in full. This gives you a history of one payment—not great for building a high rating! You need a solid payment history.

Keep to a debt-to-credit ration of 10–30%. Debt-to-credit ratio means how much you owe compared to how much you are allowed to borrow. Therefore if you have a $1000 limit on your credit card, the debt should be a maximum of $300. Less than that doesn’t help you; more suggests you’re being irresponsible with your credit.

Use more than one credit card. You don’t want too many but payment helps increase your credit rating. Following these steps your credit rating should very quickly reach 700. Now it’s time to cash in. Pay off the balance on one or two lower-limit credit cards. You can then search for balance transfer offers meaning you can transfer your remaining debt to a new card, usually interest free for a limited time. Naturally it’s important not to get too carried away. This is a LOAN which will need to be paid back eventually