Doug's Credit Center Blog

How to Repair Poor Credit


Looking at your credit report and seeing low scores is certainly not a lot of fun. Unfortunately, so many people are in the exact same situation as you. When you want to go for a car loan or something of that nature, what can you do to fix those scores?

Make a Payment Plan

In order to raise your credit scores, you need to start paying off your debt. Your debt to credit ratio is a huge component of your credit report, and you want to have a plan for paying all of it off. Decide how much money you are going to allocate each month to your credit card bills. Make sure you are paying at least the minimum amount on all of them.

Snowball Your Payments

If you really want to know how to get a car loan or home loan as quickly as possible, you should consider the famous snowball method. Start by selecting the card with the lowest balance on it. Pay the minimum on your other cards and make larger payments on this card. Once this card is paid off, you can move on to the one that has the second lowest balance and so forth and so on.

Payments On Time

Another factor that really hurts your credit score is when you do not make your payments on time. Creditors are going to see that you are constantly late, and it can take quite a while for late payments to come off of your report. Instead of being in utter despair, set reminders on your phone or write down the due dates in a paper planner. If you are able to schedule some sort of automatic payment, you could look into doing that for the time being. Make a promise to yourself to never be late on payments again.

Fixing poor credit is one of the many goals that you have right now, and you want to start working toward achieving that. To do so:

  • Create a payment plan that works for you and your financial situation.
  • Consider the snowball method of paying off credit card debt.
  • Be sure that all of your payments are made on time from this point forward.

No one wants to be dealing with low credit scores, but it’s a part of life for so many people these days. Once your debt is paid off, you are going to feel just great.


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