How to Rebound After a Past Credit Mistake

Good credit is a fundamental part of sound financial health. But, even a seemingly minor misstep can hurt your credit score. Citi Credit Knowledge Center is looking for firsthand accounts and expert advice on how to recover from a credit mistake. 1. What’s the worst mistake that can affect your credit rating? What credit mistakes have a less substantial impact on your score? 2. If a credit mistake involves missed or late payments, what are the best ways to recover from that? How long can someone expect it to take to mitigate a history of late payments? 3. When a high credit utilization ratio is the problem, how can someone develop a workable plan for paying their credit card balances down? Is requesting a credit limit increase or opening a new credit account a good quick-fix solution for improving your utilization ratio? 4. How can closing accounts hurt your score? What’s the right way to close an account with minimal score damage? 5. How can cosigning a loan or adding someone as an authorized user on your credit card backfire? What’s the best way to deal with that type of scenario when your co-signer or authorized user leaves you in debt? 6. What are the best things you can do to recover from a major credit mistake, like bankruptcy or foreclosure? 7. Are paid credit repair services ever worth it? Any other tips or advice beyond what’s covered here is also welcome, as are personal stories of credit repair. Requirements: Citi requires sources to sign off on a brief email release