If you are in debt, you will want to maintain a good credit score. If you do not have a good credit score while in debt, you will experience more problems in the future. While this is the case, it is not always easy for a person to avoid more problems while in debt. Here are four tips on how to maintain a good score while in debt.
Make payments on time:
Now, without a doubt, if you forget to make a payment to your creditor, you are going to have a bad time. Think about it for a minute and you will realize that a consumer will royally hurt his or her case when they do not make the minimum payment. In fact, this will send your score down the toilet for a long time. Luckily, if you can make payments on time for a couple of years, you will see your situation improve greatly.
No new credit:
Unless necessary, you should not get new credit. While it is easy for the average person to get a new card or two, it is not wise if you are in debt. No, instead, a person in deep debt should opt to pay down their balances and avoid new credit. Then, he or she can work on the root of the problem and get back on their feet. Remember, if you apply for new credit, you are likely to end up in the same situation, as you will spend too much money. Not only that, with a new card or two, you will kill your credit score.
How to effectively improve credit:
While you are paying down your debt, you should, at the same time, try to increase your credit score. To do so, you should pay off old balances, dispute anything wrong on the report and avoid applying for new credit. Then, if you want to get more in the future, you will have a good enough score that you can qualify for top-tier rates. Also note, that you can also find companies like creditrepair.com/reviews and others that can assist you in disputing late payments and balances in your credit report.
If possible, you should try to negotiate your interest rates. Sadly, many issuers will charge high rates to some customers. To avoid this, you should call in and simply ask for a small rate reduction. Fortunately, most major credit card companies will work with a customer and help him or her get to the bottom of the issue.
With these four tips, you can improve your score and maintain it, even while in debt. This is a wise path to follow as you can improve your long-term financial situation.
About Author: Lizzie Weakley is a freelance writer from Columbus, Ohio. She attended college at The Ohio State University where she studied communications. She enjoys the outdoors and long walks in the park with my 3-year-old husky Snowball.