I have a really bad credit score. How should I fix it? Please help me.
Rebuilding credit with a bad score is not possible overnight, but it is definitely possible with some patience and responsible use. Here is what worked best for me:
First, I got a secured credit card. Since it requires opening a fixed deposit, banks approve these cards even with a low or even without a history.
I used it for small purchases and always paid the balance in full and on time. You just need to prove that you can handle credit responsibly.
Another great option I tried was a credit-builder loan. These are small loans where you pay a set amount every month and the lender reports it to credit bureaus. This is also a simple way to build a good track record.
These are simple hacks you must follow, even if you already have a good credit score:
- Repay all your bills and debts on time.
- Avoid applying for too many loans or cards at once.
- Keep your credit usage below 30% of the total limit.
- Try to check your credit report regularly and fix errors (if any).
Again, the credit score improvement is not the thing that changes overnight. However, with responsible behaviour, you can achieve a good credit score over time.