If you are suffering financially because of a poor credit history and a low credit score, there is a way for you to re-establish a positive payment history and raise your credit score. A low credit score can be the result of many factors. Remember, your credit score is calculated by looking your payment history first. Do you pay your bills and pay them on time? If you have a history of paying a mortgage payment or car payment after the due date, it is going to reflect in a poor credit score. Poor credit scores also mean that you will have problems when trying to borrow money. There is a way to improve your credit score and improve your chances of borrowing.

Find And Fix Credit Report Errors

Every person is entitled to a free copy of their credit report once each year. Take advantage of this and examine your credit report to locate any errors. When you find something, contact the creditor and the credit bureaus to have these items fixed. This process does take time, so be patient.

Work On Paying Off All Credit Cards

One of the determinants of your credit score is related to how much credit you have available and how much you have used. If you have a credit card with a limit of $5,000 and have used $4,500, this will have a negative effect on your credit score. Work on paying this card down or transferring the balance to a card that has a larger credit limit.

Pay Any And All Loans On Time

These are the payments that matter most. Car payments, mortgage payments, and rent payments need to be paid on time. If not, they will show up on your credit report and your credit score will suffer. Paying all of your loans on time will establish a positive payment history and boost your credit score.

Do Not Apply For Another Loan Or Credit Card

Each and every time you apply for credit whether a loan or a credit card, the lender will run a credit check. They do so to assess the amount of risk you represent. The lower your credit score, the higher the risk and vice versa. These inquiries also show up on your credit report and can be a sign of a risky borrower.

When You Need To Borrow

If you are still working on your credit history and credit score, you can still borrow money. If you own a vehicle that is paid off, you can use it as collateral and take out a car title loan from a lender like Embassy Loans of Florida. The loan is not based upon credit and can be obtained very quickly.