This article was written by Matt

Over time you may have gotten in a little over your head. Going nutty with your credit cards and taking on more financial responsibility than you could handle just may have you wondering why you are currently be denied for everything from small loans to obtaining a mortgage. Getting back on financial track is possible but takes some doing. Here are a few tips to improve your credit rating so you will eventually be able to take that smoking babe to dinner and not have to worry about the waiter handing you back your credit card.

Look Under the Hood
The only way to officially know how deep in the hole you are (and not the good hole either), is by acquiring your free credit report. The three safe, reliable credit score companies are: Equifax, Experian and TransUnion. These offer a once per year, free credit report that will give you a play-by-play of what you owe as well as your score (anything under 620 will be a challenge to borrow against). Also, if you see anything on your report that seems out of place you have the right to dispute it by writing the credit report company and having it removed.

Suck it Up and Pay it Up
The best way to improve your credit report is by staying constant on all your loan paybacks. Your payment history makes up 35% of your credit score. By doing this, even if it is the minimal payment, it shows that you are in good faith. Although it may be a slow, long haul, sometimes when you need to apply for a new loan, re-financing, purchasing a new car or home the loan officer will see this attempt and take it into consideration. However, do keep in mind that since the 2008 financial fuckover, banks are skittish to even write loans for excellent credit scores let alone ones that are struggling. This does not me you shouldn’t at least ask. You may not get the full amount you seek but you may get something, which is better than nothing.

Keep it Open
As much as you may want to close your credit card account and pay it off, closing it actually negatively affects your credit because the lender will stop reporting your monthly payments. You need your monthly payments reported to improve your credit rating. Hide the card away while you pay it off but do not close it.

Schmooze
Call your creditors and let them know you are having a hard time paying your bills but do not want to jeopardize your credit rating. They often have programs for hardship situations that can help by reducing your monthly payments, maintain or improve your credit rating and allow you to get back on your feet. It’s a win-win.

Keep the monkey off your back by using these tips to improve your credit rating. When things turn around you will be able to look back and know you got through it, on your own.

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