Credit rating is extremely sensitive and a difficult thing to improve once damaged. There is a reverse relationship between credit score and debt. Once your debt starts increasing, the score gets decreasing. In order to have a healthy score, one should avoid getting into debt traps. There are no quick fix ways to improve that, but to pay your dues on time.
Do not opt for the services of debt settlement agencies because they do more harm than any good to your credit score. The main reason behind this is that your credit reports will reflect that the debt is settled and not paid in full, which certainly is not a good aspect for your score. In fact, try settling with your creditors yourself, and make a settlement with reference to the principle amount only. This will not have a negative impact on your credit score.
Credit reports most of the time have incorrect and false information. It is important to dispute such information so that your score can improve. This may relate to entries that are about 6-7 years old. That reporting is a legal right, and people can dispute any number of errors in their credit report. In case, the bureau refuses to remove this inadequate information, people have every right to take help from the law of the court.
If your debts are overwhelming and your credit becomes too poor, then it’s wise to file for bankruptcy. It is to be noted that it is easier to rebuild it, once you have filed for bankruptcy. After filing for bankruptcy, ensure that your debt levels are very low. Even if you plan to borrow, ensure that you repay on time so that your score does not get affected. Keep this in mind that it’s not easy to come to a score of 700 easily. It certainly will take time, but with smart moves, one can reach that stage gradually.