Facing an economic crisis like the one we are dealing with now is not easy, and puts consumers at more risk than ever for flailing credit scores. With gas prices sky high, the cost of living on the rise, and the unemployment going up; it is easy for singles and families to get behind on bills and payments. But you are not alone - 60% of Americans have a credit score that is below 750, meaning we've all made mistakes and have had difficulty staying on top of things. So here are a couple tips that will show you how you can still maintain a good credit score, even when living paycheck to paycheck.
1. Know Your Score. The first step to reviving your credit score is to know exactly where you're at. So, contact a trustworthy credit bureau (there are plenty of free ones out there) and ask for a copy of your current credit report. Here, you can identify exactly where you have fallen short in the past, and what to avoid in the future. You will also be able to see all open lines of credit. Perhaps you have forgotten about the Macy's credit card you opened when you were 18, or the student loans from college. You will be able to see exactly why your credit score is the way it is from this report. And in most cases, credit bureaus will also supply you with the contact numbers of all your credit lines, in case there are any inaccuracies you wish to dispute.
2. Pay Your Bills On Time. Perhaps the biggest improvement you can make is paying all your bills on time. After all, payment history is the single greatest factor used in determining your credit score. And this doesn't just mean your mortgage, loan, and credit card payments-things like cell phone bills, medical bills, rent, and utility bills can also be tacked on if past due. So what if there isn't enough money this month to pay them all? DON'T IGNORE THEM. A lot of times, companies and banks will work with you and set up a payment plan if you are having trouble making ends meet. Paying half this month and the rest next is better than paying nothing, and will allow you to avoid late fees, disconnection of service, and bills ending up in collections.
3. Start Building a Positive Credit History NOW. So your credit is not perfect, or you do not have enough established credit. What to do? Start small now and work your way up. But be smart; only take on things you can handle. Make sure you have a checking and savings account. Apply for a secured credit card to begin proving your financial responsibility. Get a co-signer for a small loan or credit card and be sure to 
make your payments on time. Also, another handy tip is to work with local lenders. They are more likely to cut you a break, and are also less likely to use big credit reporting agencies to run your credit. This means all past blemishes are less likely to show up and reflect poorly on their decision.
4. Avoid Constant Change. Frequent changes in employers and addresses can make you look unreliable and unstable. Lenders want to see a solid history of responsibility and stability-- a steady job means a steady income, which means you are more likely to pay your bills. The same thing goes for your residence. If you are moving every year, lenders will question why and often view you as a higher credit risk. Also, if you currently own your home, you are off to a great start; lenders look favorably on home owners.
5. Stay on Top of Things. The key to getting your credit back on track and keeping it that way is always knowing what is on your credit report. That means making sure your bills do not go into collections, knowing what lenders are checking your credit history, and knowing what lenders are reporting your credit, bad or good, to the credit bureaus. It is a good idea to review your credit report at least once a year to evaluate all activity. You will want to keep an eye out for an inaccuracies or potential fraudulent material.
Rebuilding your credit will most definitely not happen overnight, as not many things do. But, following these simple steps will help you start to transform your not-so-perfect credit into a score that you can be proud of. Just remember to identify your problems and start small, and work up from there. You'll get the hang of it and know what to do. Starting now will set you up for an even better future.
Dreading@skylinefinancialcorp.com
Direct Line: (805) 794-4374
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