Apply for a mortgage, a car, even a job and your credit score may make the difference between a yes and a no. But many people don't know that.
Bad credit is anything below 600. Above 700 is good and the higher the better. So how do you fix bad credit?
Tracy White of Professional Mortgage Services in Tyler has helped many people improve their credit. She says paying off your bills, paying them on time and limiting the number of credit cards you have is key.
"If you have charges, pay off the balance or negotiate a settlement. Contact the people you are in default with and try to remove any negative information on your credit report," she explains.
You remove negative information from your credit report by writing a letter to the creditor and proving you did not default on a bill or that you paid it off in full. The creditor then must remove the information in 30 days. Tracy says most creditors are easy to work with if you have problems.
"Everybody gets in trouble once in a while. Everybody has had times in their life when it goes to pot, but there are things you can do," Tracy adds.
It doesn't always take years to get good credit either. She seen people turn their credit scores around in 90 days.