Credit for Christmas and a Happy Holiday

Don't come up short for Christmas. Where there is a will, there is a way. Fix your credit now!

Many people run into financial problems or simply make mistakes that hurt their credit. If your card has ever been declined while shopping or if you have ever been declined for a loan, you know the pain of poor credit.

With the Holidays approaching, making sure your credit is up to par is important for you and your family. Fortunately, it's not too late to improve your credit score before Christmas.

Assess Your Credit Damage

Before you can fix your credit, you need to know where you stand. Your credit rating and credit score are based on the information in the credit reports maintained by three major credit rating services: Experian, TransUnion and Equifax. You can get a free copy of your report every year from each rating service through the Federal Trade Commission’s authorized provider, AnnualCreditReport.com.

Once you have your report, check your credit report for incorrect listings like late payments and how much you owe. If you find errors or entries that look suspicious, such as an account you don’t recognize, contact the credit rating service. The rating service will investigate and if the error is legitamite, correct your credit report. A notable credit repair agency like creditrepair.com can help facilitate the process.

The process isn't easy and can take time and many tries but can be done. It is worth doing as up to 43% of the population has errors on their reports. Correcting these errors can give you a quick boost to your credit rating.

Make Your Credit Payments on Time

The thing that counts most in determining your credit rating is how many late payments you have. Payment history counts for 35 percent of your credit score. Payments more than 30 days late are especially damaging. To repair your credit, there is no substitute for catching up on your bills and staying caught up. If you run into trouble, contact your creditors. Many lenders will not report an occasional delinquency if you talk to them and make a promise to pay.

Pay Off Your Credit Debt

Another major part of your credit rating is the amount and type of debt you owe. Paying down debt is a big challenge for many people, but it is essential if you want to repair your credit. The place to start is with credit cards. Stop using them entirely if you can. If you must use a credit card, make it the one with the lowest interest rate. Add as much extra money as you can to the monthly payment for the highest interest card. Pay the minimum on the others. Once the highest interest card is paid off, start putting as much as possible each month on the card with the next highest rate.

Related: Methods to Repair Your Credit

Don't Make Silly Credit Mistakes

When you are paying every bill on time and your debt is coming down, don't open any new credit accounts unless you have good reason to and do not open more than one account at a time. This is viewed as a signal you aren’t managing your finances very well. When you pay off a credit card or other debt, don’t close the account, keep it open for awhile to signal credit reporting services that you are current and in good standing. How long you have used credit counts toward your overall rating. Long-standing accounts lengthen your credit history and increase your credit score. A paid-off credit card account is a valuable asset, even if you cut up the card and never use the account again.