There are some simple ways you can improve your credit if you are having trouble getting approved for a purchase. Most lenders will not grant your request if you do not have a solid credit rating. If you do not have a copy of your credit report, you can get one for free to find out your current credit score. The fastest way to increase your score is by bringing all of your past due accounts current. If you are a heavy credit card user, try to cut down on the amount you charge by using cash instead. By contacting your creditors before your accounts become delinquent, you can arrange a temporary extension which will help prevent your credit from being damaged.
You can get a free copy of your credit report to see what debts you have outstanding, and to find out your credit score. Search online for free credit report to find out how to obtain a copy. You can get your credit report once every year for free.
Once you have a copy of your credit report, make a list of the creditors that you are currently late in paying. If possible, bring these accounts up to date immediately. If you need to consolidate your payments you can apply for a loan, however if your credit is late you may have difficulty getting approved.
If you use credit cards for purchases like gas or groceries, start using cash instead. This will reduce the amount of the outstanding balance that is reported each month to the credit rating agencies. By having more available credit from not using your cards as much, your credit score will improve.
If you are unable to pay your accounts up to date, or if you think you will have trouble in the near term, contact each of your creditors and arrange a temporary extension. There will be a charge for this convenience, but you will not have to make a full payment on any of your accounts for up to 60 days, depending on the creditor. Interest will continue to accrue, so as you regain your footing try to pay extra to make up for the added interest cost.
If the reason you are having trouble paying on time is permanent, you may want to arrange a restructuring of your debt with each creditor. Mortgage payments can often be modified, and car loans can be worked out if you take the time to sit down with your lender to find a viable solution.
Ignoring the problem will not make it go away, and many creditors will refuse to work with you if your payments fall too far behind. Your credit rating will start to improve once you have worked out a solution with your creditors, since you are now able to make your payments on time.