4 Ways You Can Improve Your Credit Score

Not getting approved for the loans or credit cards you are applying for? That means you might need to improve your credit score before your next attempt. While that isn’t exactly a quick and easy process, we’ve got some tips that will help you along the way.

Here are four ways you can improve your credit score.

Ensure That Your Credit Report is Accurate

The first step is to improve your credit score by checking your credit report. Every individual has a total of three credit reports. These reports will come from three major credit bureaus. Credit reports will often have a mistake. In fact, a study in 2012 from the Federal Trade Commission found that nearly one in five consumers had an error on at least one credit report.

Determine What You Need to Improve

A simple error doesn’t mean it is the cause of your poor credit but rather a misspelled version of the personal information. Some errors might be the blame as well. This includes a stolen identity, collection account from the past, unpaid bill from an ex, default on a loan, or mixed credit information with a similar name.

Build A Plan for Improvement

Some you have determined the accurate credit information, now’s the time to take the measures of improvement. You can start by registering for a free Credit.com account and see how it will impact your credit scores in the long run.

Fix Late Payments

While you might want to close your accounts with lots of missed payments, this will actually affect your credit rather than make it disappear. You can organize your card payments easily with your bank to ensure that they will fit your schedule.

Conclusion

With a short history line of credit, there is not a whole bunch you can do to improve it. However, you can have a friend or family member’s card with a history of on-time payments and add them as our authorized user. This might be difficult in finding someone who will be responsible and willing to agree. The best thing to do is to wait it out and not close your accounts.

Continue reading


5 Reasons Why High Credit Scores Will Benefit You

A high credit score will enable lenders to measure your risks and grant process for loans, and more. While you want to build a strong score, the process is rather slow, biased and inconsistent.

Here are 5 reasons why high credit scores will benefit you.

You will get a loan faster

High scores will help lenders speed up the process or approvals. With many decisions on credit to be made, even a mortgage application will be able to be approved in hours rather than weeks. Using credit scores will also help lenders to focus on the facts than anything else.

Credit Mistakes Won’t Haunt You

If you have had a poor history in credit performance, credit scoring will not haunt you. Those past credit issues will fade once you start showing good payment patterns. Those so-called knock-out rules will turn down borrowers will become a lesser problem.

You Will Gain More Available Credit

Lenders who use credit scores will be able to get approved for more loans. This is because credit scores will give lenders detailed information on where to base their decisions. It will also allow lenders to identify those who will perform well in the future. Lenders offer choices based on different levels of risk. Most provide their own guidelines. This means that if you are turned down by one lender, another lender might approve you.

Credit Rates Will Become Lower Overall

With more credit available, the cost of borrowers will credit will decrease. This means that the automated credit process will also include the scoring and making the process of grants all the more efficient and less costly. Through controlling credit loss, lenders will be able to make lower rates.

More Power to Negotiate

Having a high credit score will give you more leverage to negotiate a low-interest rate on a new loan or even a credit card. If you need more power to bargain, you can also refer towards offers received from other companies based on the credit scoring.

How is your current credit score? Are you looking to improve your rating? Comment below and tell us what you think!…

Continue reading


4 Habits That Will Put You At Risk of Debt

Think you’re already at risk of debt? That might be due to a few habits you might be practicing when you realize it or not. As many of us are guilty of some of these habits, the problem might occur when we continue to do it all the time and become daily habits. From overspending to building up late payments, you will set yourself on the road to debt.

Here are four habits that will put you at risk of debt.

Abuse of Balance Transfers

While it might sound like a good idea to transfer balances on cards with high-interest rates to low-interest rates, you must be aware of the charges on new cards and the limit on paying off the balance before the expiration. Those who start to use new credit cards will actually put themselves in debt without even paying the first balance.

Charging Credit Over the Use of Cash

Have you paid with a credit card rather than choosing to pay with cash instead? Small purchases will quickly add up, especially if you already have a high-standing balance on a credit card. Those balances will lead to interest and add more money to your outstanding balance.

Lack of Emergency Funds

Consider the unexpected expenses that are due to illness or accidents. Will you have an emergency fund to look to in such situations? If you don’t, you might have to borrow to pay for these issues and get an idea of just how much you spend every month. This will also allow you to save up and determine how you can prepare a full six months’ worth of expenses.

Failure in Keeping Track of Your Credit Report

When was the last time you checked your credit report? Have you checked to see if any identity thief is stealing your name? Be sure to know what is going on and fix any mistakes right in their tracks.

Do you follow any of these habits? Comment below and tell us what you think!

Continue reading