Saturday, December 17, 2016, AM | Leave Comment
Having a low credit score can impact quite a few major decisions in your life.
Over the years, those who have poor credit scores will often have their loan applications turned down or be forced to deal with unmanageable interest rates.
Here are just a few of the ways you can start saving money and improving your credit score today.
Close Some of Your Active Accounts
Every time that you borrow money or open a bank account, it adds an active account to your credit report.
While everyone should have at least a few open accounts, dozens of accounts might look like a major red flag to lenders.
This is especially common for students who take out new loans every semester. Those who cannot completely pay off a few of their accounts should consider a consolidation program that will bundle all of the loans into a single monthly payment.
Don’t Ignore Outstanding Accounts
Avoiding credit card and utility companies because you owe them money is a very bad idea.
In some cases, simply speaking with them and explaining what is happening with your finances is enough for them to restructure your payments.
From their position, charging you an amount you can never pay is a waste of their resources. They might do quite a bit to come up with a payment plan that benefits both of you.
Work With a Credit Repair Firm
No matter how much time and energy you spend trying to repair your credit and learning how to save money, may require professional help.
A credit repair firm will put in the legwork so that you do not have to worry about filing paperwork or negotiating with financial firms. They often offer these service for a small fee, and they could end up saving you thousands in the long run.
Consider Switching to a Credit Union
The difference between a bank and a credit union is the fact that a credit union is owned by the members themselves.
When a credit union is doing well, they will pass on the savings to all of their members.
Many of them also offer free credit repair services to anyone who has had an active account for a set period of time.
If you have taken all of these steps and are still having problems with your credit score, then you might have false information on your credit report. To clear these issues up, you must notify the reporting company in writing that you would like a full investigation of any unusual activities you believe shouldn’t be there.
Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter and Facebook.