How to Get a Grip on your Credit Score
Financially and economically, they say times are pretty good right now. I guess everything is relative, but for the most part, that statement is correct. Mortgage rates are not the lowest they have ever been, but they are manageable without being ridiculous. Personal loans are available, car loans are available, all at competitive interest rates.
| Most people know they have a credit score but very few know that they can raise their credit score by just a few simple steps, and they don't need to take on more debt to do it. Start enjoying the rewards that having excellent credit can provide for you. |
That is, times are pretty good for people with good credit or excellent credit. But what about people who account for the vast majority who do not have good credit, and may even have bad credit. Are times as good for them?
The answer is not no, depending on who you ask. If you ask the average consumer with bad credit, you will probably be told that times are not good. But if you ask the savvy consumer with bad credit who understands how loans are determined and rated, you might be surprised to find out they would agree with you that times are pretty good.
- How to Improving & Establishing a Great Credit Score
Our credit scores are extremely important for buying houses, new cars, and getting other types of loans. Often when we are young we don’t realize how important it is to keep our credit scores... - Doing it Yourself Credit Repair
We all know what bad credit can do to our ability to get financial help when it is needed the most. Although, it is a part of life, things do get out of hand; missing payments...
What is the difference? The big difference is knowledge. Knowing how the credit score game is played and how to score points in it are a huge advantage over the consumer who simply accepts their bad credit score and goes glumly on their way.
If you have a bad credit score, there are things you can do. Or more correctly phrased, there are things you need to be doing, starting today, because you do not want to keep the label of a person with "bad credit". Determine what it is that puts you in that category, and then get it changed. Despite what some companies will tell you, it does not happen overnight, but if you start showing a track record of on time payments for all your financial obligations, as well as taking other steps to improve your credit score, it will make a huge difference.
The place to start is with your credit reports. Yes, that is plural because you have three totally separate and distinct credit reports, one from each of the big three credit reporting agencies. These companies do not share information, so they each have a different view of you from a credit perspective. The thing you will very likely discover when you are going over your credit reports is that they contain errors. One of your creditors is reporting late payments, another is still reporting a loan you paid off years ago, and much more. These errors will be reported for years to come if you do not dispute the errors with the credit bureaus. Once you dispute an item, it is their legal responsibility to investigate the error with the creditor, and if it cannot be proven, it needs to be removed from your credit report. Many consumers find that their credit score can jump to the next level by just getting errors corrected in their credit reports.
Next, negotiate with your credit card issuers. If you have been a long time customer of theirs and they are still charging you 22% interest or more, then ask for a reduction in interest. If they decline, show them how much you appreciate them by closing that account. It's a competitive industry and there is no sense in allowing them to make money off you by the truckload with their high interest rates.
If you have several accounts with the same issuer, ask if you can consolidate your accounts into just one or two cards, perhaps combining the credit limits to give you a decent credit limit on one or two cards. If they won't do that, then close some of those accounts.
For the accounts you have open, try to keep your outstanding balance under approximately 30-35% of your credit limit. More than that raises red flags with credit issuers, and less than that indicates you don't use the account enough for it to be a real indication of your credit.
Above all, make each and every payment on time, paying more than the minimum amount when you can.
Just these simple steps can raise your credit score by an appreciable amount, and you haven't taken on any more debt to do this! Keep your credit clean and treat it with the respect that it deserves so that you can reap the benefits of having excellent credit.
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