Your credit score affects your most significant life decisions: buying a car, home, or making any big purchase. Bad credit will affect your budget with higher interest rates on borrowed money, so eventually, you end up paying more.
Is your credit score not where you want it to be? Well, let’s try to improve it quickly with some simple steps. Take a look at the factors that determine your credit score:
The goal is to make some simple moves right away and start seeing credit score improvement as soon as 30 days later.
Your credit score may be inaccurate, according to a study by the Federal Trade Commission, one out of five credit reports contain errors. Start by getting your credit report and going over each creditor account, the debt amount, payment history, etc. You should be able to spot errors, for instance, if you find an “unpaid” balance that you know you already paid or a bill in collections you know never existed, you can dispute it and raise your credit score immediately. Request a free Equifax, Experian, and TransUnion credit reports at annualcreditreport.com or by calling (803) 261-7851.
Your credit score is a reflection of your ability to pay back debts, and a history of timely payments is a good indicator you’ll handle future obligations responsibly. Payment history is a major factor determining your score, so make payments on time, avoid defaults, repossessions, foreclosures, and third party collections. Set up payment alerts with all your credit cards and loans. Anything that would indicate non-performance of liability is going to harm your credit score.
Delinquent payments can remain on your credit report for up to seven years. If you have a history of late payments, ask your credit card issuer or lender if they can forgive that incident. Maybe you were on vacation, or the check got lost in the mail – credit card companies are pretty forgiving if you have a good track record of on-time payments. Remember, closing an account won’t make late payments disappear.
If you struggle with multiple credit card payments and insane rates, consolidate all that debt into one simple loan. There are companies like Upstart (upstart.com) that specialize in jumbo loans to cover your credit card’s tab. Use that loan to pay off your smaller accounts, then make monthly payments to repay one loan. It could lower your monthly payments and help you pay off that debt much faster. Plus, no more credit card payments. It’s easy to check online if you qualify, it takes just two minutes, and it could save you thousands of dollars.
Your credit utilization ratio has the second-highest impact on your credit score. It refers to the amount of credit you’re using versus your credit limit. For example, if your credit card has a $6,000 limit, and you’ve accumulated a $3,000 in debt on it, your credit utilization rate is 50%. The goal is to stay under 30%, but the lower, the better. If you can’t be within 30% right away, call your credit card company and ask to increase your credit limit. But please be careful, you may be tempted to use the new credit line – DON’T, be cautious with your spendings.
As long as you’re making payments on time, borrowing money can help your credit score. If you stop paying, you’ll risk the account falling into collections.
If you’ve been getting phone calls and mail from debt collectors, try to seek professional help from a credit repair service. They will help you clean up your credit report and deal with collection agencies. If you need assistance, you can contact us, Click Here and we will refer you to the right agency. They will contact your debt collectors to have negative marks on your credit report removed, among other steps to improve your credit.
Your credit score can update as frequently as every day; however, it’s more likely to see changes appear on your report in about 30 days. If you need to get your score up quickly, don’t wait, get to work today, so you can start seeing improvements in 30 days.
Most credit scores operate between 300 to 850 points. The credit ranges generally look like this:
We’ve assisted customers with Poor Credit to get their own home using our extensive network of credit repair bureaus and specialty lenders. Call us today at (803) 261-7851, we will work with your unique situation and refer you to the right place!
Improve your Credit Score,
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Our credit repair partners will help you:
Speed up the approval process by improving your credit score and telling the story of who you really are as a person.
Help you save thousands of dollars on high-interest rates due to less than ideal credit scores, likely due to no fault of your own.
Don’t Let Credit Ruin Your Home Buying Opportunity; Home Ownership is Closer Than You Think!