If you have bad credit, and have been looking for a personal loan, you do have options for loans as we have shown in our series on lenders who are willing to look past your credit score. Yet even these lenders will not give you a good APR on a personal loan if your credit score is bad. So you should work on raising up your credit score as much as possible. The path towards good credit is not very quick, but it does not need to take years either, it just takes knowledge, self discipline and the will to apply the knowledge you have gained towards repairing your credit score. Lets go over some credit repair basics so that you can get that APR you deserve on all of your future credit cards and personal loans shall we?

Review your credit report on a regular basis

You cannot fight a battle without knowing the battle plan, and your credit report is the battle field. With the map of this “battle field” you can make the needed plans to turn around your credit score. Most people with bad credit sadly have never looked at their credit reports, let alone on a regular basis. Looking at the 3 credit reports gives you an idea of how truly bad things might be, but also how to turn it around. It will also allow you to check for mistakes and errors, which believe it or not are rather common place these days, with upwards of 25% of all credit reports containing at least one error which brings down a consumers credit score. If you do find a mistake you can contact the credit reporting agency to correct the mistake or challenge any errors you find. You can pull your credit reports for free once per year at annualcreditreport, and also any time that you are denied credit you can request a copy from the reporting agency whose report led to a denial of credit. For best results, I recommend that you subscribe to a company that pulls all 3 reports, and review your credit report once a month. You should find a service that also allows you to see at least a variant of your FICO score, so you can monitor how well your progress is.

Make higher payments and pay on time, every time

Making higher payments than the minimum shows creditors that you are a responsible borrower. It also gets you head on payments, and reduces credit utilization, which bumps up your credit score. A large portion of your credit score is your payment history. To that end, avoid missing any payments, even one missed payment can severely tank your credit score. The good news is even if you have made mistakes in this area before, it is not to late to get into good habits, and this will eventually be reflected in your credit score.

Avoid using more than 30 percent of your available credit

Anytime you use more than 30 percent of your available credit, you are hurting your credit score. A large portion of your credit score takes into account your credit utilization, which means how much of your available credit that you are using. Using less than 10% is the ideal, but you can go as high as 30 percent without tanking your score. Anything higher than 30% and your credit score will suffer, even if you pay the balance off in full each month, its still reported on your statements, which is how this score is calculated. In short if your credit limit is $10,000 you want to use no more than $3000, or your credit score will take a dip.

Do not close accounts

If you have a credit card that you do not use, or one with a yearly fee, you may be tempted to close the account out. It might be wise to just leave it open, especially if it is an old account. Age of accounts matters much for your credit score, as does how many open accounts you have. Also any card you have but never use is actually good for your credit score, since it lowers your credit utilization. Mostly keeping the account open is a matter of credit history, which is good for your credit score. Also be aware that closing an account with a negative history will not remove the negative information from your credit report.

As usual, the editorial team from https://topcreditcards.co is working hard to help consumers save money with credit, finance, lending and money related topics.