News 12 at 6, June 20, 2007
Credit scores run anywhere from 300 to 850. A great score is 760 and a not so good score is anywhere from 620 on down.
First off, you need to find out why your credit is bad.
Is it late payments, incomplete payments or just way too much debt??
All of those are correctable--maybe not easily correctable, but they can be fixed.
They biggest key is to make full payments on time. The goal, obviously, is to get the debt paid off.
That may mean making some major and painful sacrifices.
If you transfer some of the funds to a card with a lower interest rate, don't close out the original card. That can hurt you more than help you.
One other big factor that goes into creating a healthy credit score is having diversified debt. That means in addition to having a couple of credit cards, you have a car loan or a mortgage.
But the main thing is making sure it is a manageable amount of debt that you can afford.