Do you have poor credit history? What are the major disadvantages of keeping bad credit score? How do you understand that your credit report is bad? If you have all these questions in relation to your credit, the team at Credit Health is here to answer them.
Now, let us talk in detail about the right guidelines that you be following in order to fix your credit problem once and for all. It is important to note that, there are some common and silly credit mistakes that credit card holders make which needs to be taken care of. Moreover, you should note that, these steps should be implemented diligently in order to view the results. The things to remember are paying your credit card dues, always checking credit score, disputing credit report errors, inquiring to credit card company, adding authorized user, getting credit limit increase, having another credit card, keeping old credit cards open, making timely payment and also understanding credit repair scam. In addition to that, these measures is not for one time but needs to followed up for as long as you are using credit card, other wise, your credit score will again drop.
What are the essential tips to repair my credit ? I am suffering from bad credit for long which have had bad effects on my financial condition, so can you suggest with the correct measures which I can take in order to fix my monetary situation? You need to read the post till the end for the right solutions.
Do Pay your Dues
There are instances when you need a higher credit score because you want to borrow money. however, do note that, if you had the money to pay down your balances, then you might not need to borrow any in the first place.
You need to understand that paying down balances may be tough to pull off as a short-term move to increase your credit score. However, it should be part of your long-term financial plan and it will your credit score increase over time.
Always Check Credit Score
The next important thing is to always check your financial goals on a regular basis and which is now available through many online tools and websites along with the top three credit credit bureaus namely Equifax, TransUnion and also Experian.
In addition to that, you personally need to review your credit score and also take professional help in order to find any kind of errors that you find in your credit report and get it corrected as soon as possible in order to avoid any bad impacts.
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Dispute Credit Report Errors
You can also dispute errors through each credit bureau, if you think, it is worth the effort. However, keep in mind some disputes will take longer than others. Once you initiate a dispute, the credit bureaus are required to investigate it and report the resolution.
Another easy but tiresome effort on your part which will have positive impact on your credit score is that, you need to spend as much time as it takes trying to have derogatory marks removed because they also weigh heavily on your overall credit score.
Enquire to Credit Card Company
It is very important to be proactive in order to save paying fines and rectifying your credit mistakes with your credit card company. You will be surprised to know that creditors can instruct credit bureaus to remove entries from your credit report at any time.
There are many cases when you need to remove a negative comment, a late payment, or an account that was marked paid as agreed when creditor agreed to let you pay less than you owed. For that purpose, you need to ask your credit company in a nice manner.
If you know someone has a credit card with little or no balance and a great payment history; then try to add that person as an authorized user. Do note that, from a credit score point of view you automatically benefit you credit score.
However, there is catch to it as if the person, in any case, makes a late payment, that entry will appear as negative on your credit report too. For that reason, it is a gamble that you have to play.
Get Credit limit Increase
The thing to remember is to knowing about credit card utilization as the ratio of available credit used makes a big difference. For that reason, carrying a balance of more than fifty percent of your available credit will negatively impact your score.
In addition to that, do note that, maximizing your cards will definitely hurt your score. One easy practice that most credit card holders adopt in order to fix their credit score is increasing your credit limit which automatically improves your credit ratio.
Have another Credit Card
Do remember that, another way to increase your credit card score is to open a new account. As long as you do not carry a balance on that card, your available credit immediately increases by that card’s limit.
Try to get a card that does not charge an annual fee, though. Your best bet is through a bank where you already have an account. It is true fact that, credit cards with no annual fee tend to charge higher interest rates, but if you never carry a balance, the interest rate will not even matter.
Keep old Credit Cards Open
Do remember that, your age of credit history has a good impact on your credit score. To give the readers an example, if you are having a certain credit card for around ten years; closing that account may decrease your overall average credit history and negatively impact your score.
This tactic is more relevant over the short term. However, managing many credit cards takes a lot of effort. Do read our previous post, which talks about the advantages of keeping more that one credit card.
Make timely Payment
Another vital mistake that is done on the part of the credit card holders is not making their payments on time. Do remember that, even one late payment can hurt your score and also ensure that you pay your bills on time.
In addition to that, you need to understand which payments are more important than the other and will have future implications as your credit card and mortgage lender provider will definitely report a late payment to the credit bureaus, but utilities and cell providers likely will not.
Understand Credit repair Scam
In the last point, we will talk about credit repair scam that many credit holders have faced with, is never going to improve your credit score but will lower your credit report in the long term which will definitely hamper your finances.
Moreover, you should always be aware of the scams. The Credit repair scammers prey on people who are desperate to remove negative credit information and improve their credit score. There are many bogus credit card repair companies out there.
Things to Remember:
So, the following measures have helped the credit card holders better understanding about the reasons for the decrease in their credit score and the steps to take in order to revive them faster for the long-term. Moreover, having good credit score will have better implications in your professional along with your monetary condition. In addition to that, one vital thing that also needs to be understood is that, the results of your credit card report will not show instantly but will improve in the long-term process. Always, remember to ensure that you have better credit score before taking any kind of vital monetary decisions = in your life. Thus, the time has come for the readers to start using the step-by-step guidelines which have been discussed in details above, and not forget to share their feedback with us in the comment section below!
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— CreditHealth Care (@Credithealth24) August 21, 2018