Tips for Rebuilding Your Credit and Improving Your Credit Score
Wednesday, June 5, 2019, 6:00 PM | Leave Comment
A three digit number can make a big difference in our lives. While a low credit score can prevent you from borrowing money from a bank or financial institution, a high number can allow you to finance a car or house at a relatively reasonable interest rate.
If your score isn’t as high as you’d like it to be, there are ways to rebuild and improve it.
Just remember that you build your renko charts and credit score one brick at a time, so to speak, and the tips below can help you rebuild your credit and improve your score in no time.
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Clear up collection accounts and credit reports
One of the easiest ways to clear up your credit score — because this might only require a phone call — is making sure your credit reports are accurate. If you see errors, then you need to make disputes to have the information corrected. After all, inaccuracies on your reports (such as an account that you already paid off) can drag your score down.
During this process, you should also clear up any collection accounts you might have. You might owe a large sum of money, but some creditors will be willing to work with you. This can give you more time to pay these debts down, and at a more reasonable weekly/monthly payment.
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Pay your bills on time
One thing that will make your credit score worse is continuing to pay your bills late. Paying your bills late can also lead to late charges incurring which increases the amount of money you have to pay back. Making payments on time can also show creditors that you’re reliable, and it’s a good indicator of future performance in their eyes.
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Reduce the debt you owe
High outstanding debt can negatively affect your credit score. That reason alone is a good reason to reduce your debts, but it’s not the only reason.
High interest rates on high balance accounts can lead to your monthly payments rising and you having to pay back more money in the long term (for loans, credit cards, etc.). Having a low credit utilization (the portion of the available credit you’re using) can help increase your credit, and the opposite can count against you.
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Get a secured credit card
Once you’re able to make all of your payments on time again, you can consider getting a secured credit card or becoming an authorized user.
Using credit and making on-time payments (preferably in full, keeping the balance down) can help increase your score. Of course, it can be challenging to get a new credit card if your score is low or you have negative marks from a history of late payments.
A secured credit card requires the user to keep a deposit in a linked account to use as collateral, therefore making it secured. You can also ask to become an authorized user on someone’s account. However, this won’t have a huge effect on your credit score (but it could help) and it can hurt your score if payments aren’t made on time.
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Create an actionable plan
This might sound obvious, but if you want to improve your credit score, then have to make an actionable plan that requires being realistic about your finances. Not everyone is in the same boat, but improving your credit score might only require a few steps such as paying your debt down.
Taking out payday loans online might be necessary for people who need money fast and can make on-time payments for the loan. This type of loan could be easier for you to get approved for because it can be for smaller amounts of money. Plus, it can help you catch up on payments or stay ahead of bills.
Nonetheless, sitting down and analyzing your finances can help you come up with an actionable plan that’s tailored to you and reasonable.
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