Let’s face it—bad credit can feel like a life sentence. It holds you back from everything: getting approved for loans, scoring that low-interest rate, or even landing the apartment you’ve had your eye on. But here’s the good news: fixing your credit isn’t as impossible as it might seem. In fact, with the right steps, you can start seeing improvements in no time.
Step 1: Understand Your Credit Situation
Before you can fix your credit, you need to know where you stand. The first step is to take a good look at your credit report. It may sound intimidating, but trust us—it’s the best way to pinpoint what’s holding you back.
Check Your Credit Report
Everyone’s situation is very unique so start by understanding what’s on your credit report today. This will give you an overview of your credit history, including any negative marks like missed payments, collections, or errors. Make sure to look for:
- Late payments
- Collections
- Inaccurate information
- Bankruptices
Pro Tip: If you feel overwhelmed, don’t panic. Hatch Credit can help you get copies of each of your credit reports and understand the different items impacting your score. And if you find any errors, you can dispute those mistakes and potentially have them removed. Hatch Credit offers credit repair services where we’ll work with the credit bureaus to ensure that your report is accurate (and fair!)
Know Your Credit Score & What It Means
Your credit score is the key factor in determining whether you’ll be approved for credit or loans and what interest rates you’ll get. It ranges from 300 (poor) to 850 (excellent). Understanding where you fall can help you determine the best course of action to take.
If your score is in the low range, Hatch’s credit repair services can help you take meaningful steps toward improving it, faster than you might expect.
Step 2: Take Immediate Action to Fix Your Credit
Now that you know where you stand, it’s time to get to work. Depending on what you find on your report, here’s what you can do right away to start making positive changes to your credit score:
Get Current on any Late Payments
Your payment history is the most significant factor influencing your credit score—about 35%. If you’ve missed payments in the past, catch up on them as soon as possible. Even if you’re unable to pay the full balance, getting current will have a positive effect on your credit score over time.
As part of our credit repair services, Hatch can even help you negotiate with creditors to potentially remove late payments from your report as a goodwill gesture.
Pay Down Your Credit Card Balances
Your credit utilization ratio (how much you owe compared to your available credit) plays a big role in your score. The goal here is to keep it under 30% of your credit limit. Paying down credit card balances can give your score an immediate boost.
Dispute Inaccurate Information on Your Credit Report
If you’ve found errors on your credit report, dispute them. Hatch can help you file disputes with the credit bureaus to correct any mistakes that are dragging down your score.
Consider Credit-Building Tools
If your credit score is low because your file is “thin” or there’s not a lot of credit history yet, you could benefit from building positive credit as well. Here are a few options:
- Secured Credit Cards: These are easy to get and help rebuild your credit.
- Credit-Building Loans: They’re designed to help you establish a solid credit history.
- Rent Reporters: Use one of the many tools out there to report your positive rent history to the bureaus.
Step 3: Assess What Was Happening in Your Life When Negative Items Showed Up
Sometimes, negative marks on your credit report don’t tell the whole story. The timing of late payments, collections, or defaults might have coincided with major life events—things that were outside of your control. It’s important to reflect on what might have been happening in your life during the period these items appeared.
Accurate Isn’t Always Fair
Just because an item on your credit report is accurate doesn’t always mean it’s fair. Situations like divorce, unemployment, medical emergencies, or even natural disasters can cause serious financial strain, leading to missed payments or other negative marks. If any of these events were happening during the time your credit took a hit, you have the right to explain your story to the credit bureaus.
You Have the Right to Tell Your Story
When life circumstances impact your credit, you can tell your story to the credit bureaus. This could be through a consumer statement on your credit report, where you can explain what happened—whether it was an illness, a job loss, or something else. The credit bureaus are required to consider these details in their evaluation.
At Hatch, we work with you to help explain your story to the credit bureaus when necessary, making sure that factors beyond your control are taken into account.
Step 4: Avoid Common Credit Pitfalls
While you’re working on rebuilding your credit, make sure to avoid these common mistakes that could slow down your progress:
Don’t Apply for Too Many Credit Cards
Every time you apply for a credit card, a hard inquiry is made on your credit report. This can lower your score temporarily. Stick to the essentials, and space out applications.
Beware of Credit Repair Scams
Be careful with companies that promise to “erase” your credit issues for a fee. Unfortunately, many of these are scams. Hatch offers legitimate credit repair services that actually make a difference. We work with you to fix your credit, and we never promise results we can’t deliver.
Take Action with Hatch Today
Improving your credit takes time, but it doesn’t have to be overwhelming. By following the right steps, staying on top of your credit report, and using the right tools, you can see a real difference.
If you’re looking for expert help, Hatch’s team is ready to guide you through every step of the process. From credit report disputes to rebuilding strategies, we’ve got you covered.
Start today and see how Hatch can help you take control of your credit.
Don’t let bad credit hold you back any longer. With Hatch Credit, you’re on the path from denied to approved!