Getting saddled with a bad credit rating can happened to anyone at anytime — the car breaks down or your child needs braces. Suddenly the money for paying the regular monthly bills is no longer there. You are left wondering how to improve credit score.
Cheer up. Since suffering from bad credit is so common there are many tried and true methods available. They just may take some research and a bit of legwork and time. A good credit score which can determine whether you can get a car or get a job plainly is worth the effort.
Credit scores are kept by credit rating agencies and are based primarily on your borrowing habits and payment history. Lenders and credit card companies submit their experiences with you which are then compiled into a credit report and you are then graded on your borrowing habits. So getting a copy of that report is the first and most important step. Visit here to more info.
Once you have your report in hand check to see if there are any errors. That is the easiest fix to make on the way to improving your score. That can be done by filing a credit dispute with the reporting company.
The top two culprits in creating a bad credit score are slow or missed payments and over borrowing on your credit line. If the payment history is full of late payments perhaps adjusting your payment calendar may make a difference. Or you may consider a debt consolidation plan with a reputable company. Using more than 30 percent of your allowed credit limit is also a red flag to those keeping score. So if your limit is $10000 do not carry more than $3000 in actual debt on it. If you are above make regular payments to lower the ratio.
The best way how to improve credit score is by showing you know how to handle budget responsibilities. Do that by getting a secured credit card. Try to obtain gas and store credit cards. Even your local bank may approve you for a limited amount. There also are companies that specialize in approving credit to the less credit worthy though the interest rates tend to be higher.
There also are companies and individual credit counselors you can turn to who make a business of helping people out of the bad credit hole. They know how to improve credit score and can you back in the saddle.
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