Repairing credit involves more than applying for and being approved for new loans. You must also show that you can now responsibly handle that credit if you want to improve and maintain a good credit score.
- Always pay bills on time.
- Consider setting up automated payments to ensure that you don’t miss any payments.
- Pay more than the minimum payment in order to keep your utilization rates down and save on interest costs.
- Pay credit card balances in full every month. This ensures you do not borrow more than you can safely repay.
- If you are denied credit, wait a while before re-applying to avoid the negative impact of multiple credit applications on your credit score.
- Borrow only what you need and keep credit limits low.
- Do not put everyday living expenses on credit. Consider credit cards a method of payment, not a way to finance your lifestyle.