12 Strategies to Improve Your Credit Score

When it comes to a poor credit rating, there’s no quick fix. It’s kind of like managing weight. It’s so easy to gain weight over a short period of time with poor health habits. Losing the weight is a different story. It takes sometimes 2-3 times longer to lose weight than it took to gain it. Credit scores are similarly difficult to rebuild. There are, however, strategies to help you strengthen your credit score over time.

Ask your credit card company to increase your limit: They may deny you, but if they don’t, it’s one way to improve your credit score over time. The catch is that you can’t max out your card once your limit has been increased. Leave the credit window open and pay down your balance to $0 for the best credit results.

Open numerous accounts: In the short term, this won’t do much to improve your score. Over time, however, it is the amount of credit you aren’t using or can pay down each month that will build your score. Spending on every card you open can lead you down a path of surmounting debt. Be very strategic if you try this method to build your score. Use them intermittently for small purchases to keep your account open, and pay them off immediately. You will also have more cards to track for fraudulent charges. Only open as many accounts as you can reasonably monitor for the best results from this strategy.

Never skip a payment or pay late: Paying your mortgage late or forgetting to pay a credit card bill can cause even good credit scores to plummet if they get listed on your rating. Having a high credit score can mean the difference in thousands of dollars in extra fees and interest over time for large loans and expenditures. If you know you’re going to have difficulty making a payment on time, contact your creditor. You may be able to get the payment date moved temporarily or work out some other arrangement to ensure your credit score does not suffer due to unforeseen circumstances.

Don’t max out your credit card: Having good payment history and owning a credit card are only pieces of the credit score equation. Try not to carry a balance that is over 35% of your credit limit. If you have a high balance on one card and relatively low balances on others, it may make sense to transfer the high balance to several low balance cards to keep the percentage of each card at or under 35%.

Don’t close unused card accounts: Long histories of holding a card positively impacts your credit score. Even if you don’t use a card, you should hold onto and monitor the account. It can be beneficial even if the account is completely inactive.

Use your home equity line to pay down debt: Occasionally, it makes sense to transfer your credit card debt to a new or existing home equity line. If you use this approach, you should only transfer debt if the interest rate on your home equity line is lower than that of your credit card. You should also focus on paying down the debt instead of carrying it on the home equity line. This strategy can improve your score because the scoring formula that FICO uses evaluates your handling of different types of debt.

Individualize your accounts after divorce: Since married couples share debt burdens, what one spouse does will affect the other’s score. Joint accounts should be paid down and closed or transferred into individual accounts. Then, you will have the challenge of rebuilding independent credit with new cards, loans, or a mortgage

Pay off debt as you go: Make extra payments throughout the month to prevent the appearance of debt accumulation over the course of a month. It will leave you without as much money in your bank account through the month but can help build and keep your credit score higher.

Become a joint credit holder on someone else’s account: If you know someone who has great payment history and a good credit score, tying into his or her account can actually help you improve your credit score. You need to be able to trust in whoever’s account you join, however, because his or her poor payments will affect you. Getting removed from a joint account may be difficult, as well.

Review your credit report: Make sure you contact credit reporting companies and get outdated or incorrect information removed from your history. Inaccuracies can take up to a month to correct, but is a short-term solution to boosting your score.

Don’t apply for too many credit cards at once: Inquiry information is reported to credit reporting agencies and will be listed on your report for two years. Multiple inquiries can significantly impact your credit score for up to a year. Mortgages and car loans are exceptions to this strategy. Multiple inquiries will be treated singularly and will not affect your credit score.

Talk with creditors: If you face a difficult financial situation, your credit may work with you to find a viable solution to help you pay off debt without defaulting. Not talking to your creditor and defaulting on a card may mean you will be contacted by a collections agency, and your credit score will certainly be impacted.

Keep your knowledge of your credit score up-to-date so that you know if you need to work on rebuilding or maintaining it. Contacting a credit specialist can also be beneficial in informing you about what is going on with your credit. At National Credit Advisors, we will provide you with a free credit case evaluation and help you build your credit with a number of proven tactics.

Improve Your Credit Scores – The Easy Way

The credit score of an individual plays an important role in determining his/her eligibility for a certain type of loan. People While a good credit score makes one easily eligible to seek finances, a negative credit score does just the opposite. Though a majority of lenders are apprehensive of extending loans to people with bad credit scores, this should not dampen the spirits of an individual from seeking loans to meet his/ her necessities. Bankruptcy or a poor credit score is definitely not the end of the road. There are companies that specialize in providing bad credit loans to the customers. Apart from that, with proper knowledge and application over a period of time, an individual can improve his credit score and become a preferred customer for the financing companies yet again.

Firstly, it helps to find out the cause of a low credit score. Figure out if your demands are more than what you can afford, whether you are an extravagant spender, or do you save enough. Reasoning these out will certainly help in finding a way by which you can curb your expenses and have a control on your finances.

Have a good look at your credit report. A credit report is a cumulative report based on the payment history, length of credit history, amounts owed, type of credit and any new credit opted for. Check if there are any errors related to the record of transactions carried out by you. In case of such errors, correspond with your reporting agency and ask for a detailed investigation to fix the problems.

Try to improve your credit scores by paying the bills on time. Clear up the past due bills, if any. Get in touch with your creditors and work out a payment plan that meets the interest of both the parties. Try to minimize your credit card balances and pay off the debts rather than opening new accounts which can in turn lower your credit score. However if you have zero balance unused accounts, do not close them as it might do some good to your overall credit score.

A low credit score holder finds it difficult to qualify for an unsecured credit card or an auto loan. In such a case, a secured credit card is a wiser option. Secured cards give a credit limit that is equal to the amount you have at the issuing bank. Make sure the secured credit card has a reasonable annual fee and also reports your transactions to the major credit bureaus such as Equifax, Experian and Transunion. Your credit score will only improve if your payment details are reported to these credit bureaus. With regular payments one can get the secured credit card upgraded to an unsecured one in a years time. People intending to buy a car can opt for specialized auto loans such as bad credit car loans. These loans charge a higher rate of interest than the general ones but on-time payment of EMIs for a bad credit car loan certainly helps the credit score. Once the score improves, a customer can refinance it with a general car loan that charges a lower rate of interest.

There is nothing to feel downhearted and devastated when you have a low credit score or have run bankrupt. Rather, this should be taken as an opportunity to re-plan your finances in a better way. A wise and strategic approach towards your finances will definitely help you to overcome this temporary phase by improving and building up a good credit score.

How to Improve Your Credit After Bankruptcy

As you may know already, Chapters 7, 11, and 12 will remain on one’s credit report for ten years from the filing date. A Chapter 13 bankruptcy is reported for seven years from the filing date. Accounts included in a bankruptcy will remain for seven years from the date reported as included in the bankruptcy. Your ability to re-establish your credit after filing bankruptcy is better now than it has ever been. After your bankruptcy is discharged, you will start receiving a great number of solicitations offering to finance homes, vehicles and credit cards.

These are some of the following steps you should take:

1. Examine Your Credit Report – The very first thing you should do is obtain a copy of your credit reports and make sure there are no errors or inaccuracies in you report.

2. Pay Your Bills On Time, Every Time – Pay your bills and rent on time all the time. Remember your payment history is 35% of your credit score.

3. Bank Account – Start with a checking or savings account. Lenders may use this to determine if you are currently being responsible with finances.

4. Build With Store Credit – Apply for store credit cards or gas card. Use it for items you would normally pay cash for, this way it keeps your monthly balances within reason which makes it easier to pay off each month.

5. Secured Credit Cards – Apply for a secured card where you can deposit cash and charge against it. Pay advances back over two months so that they will be reflected as positive marks on your credit report.

6. Friends Or Family – Find a friend or relative that is willing to co-sign for you on a loan or add you to their credit file.

7. Look For The Right Lenders – Search out lenders that are more apt to consider to help you even with a bankruptcy.

8. Buying A Car – If you buy a car, make sure it’s a used car so you do not get hit with the depreciation that occurs during the first two years of a new car purchase.

9. Stay Away From Payday Loans – Payday loans that are at high interest rates they are a “bad credit” trap.

10. Be Proactive – Often times writing a letter to each of the credit bureaus explaining the circumstances that initially lead you filing for bankruptcy.

One of the most important lesson to learn in dealing with the challenges of a bankruptcy is to be patient. Understand that the path to bankruptcy did not happen overnight. And neither will the path to improving your credit. By following the tips above, the path to improved credit score is very possible. If you adhere to these 10 tips you will be able to improve your credit score and your life.

Improve Your Credit Score With the Help of a Reliable Credit Repair Service Provider

An excellent credit record allows a customer to gain the ability to obtain a lucrative loan program to purchase building, car and other essential things. If you have a good credit score, then you can acquire a good loan program for your requirement. However, if you have inappropriate one, then it might create an obstacle when you plan to buy vehicle, house as well as other relevant things. If you are unable to acquire it, then it becomes difficult for you to acquire an appropriate loan along with affordable interest rates. In this type of scenario, it is quite natural that you should have developed an interest to obtain as well as to maintain this type of score.

However, there are circumstances when you are unable to secure it even though you have tried your level best to do so by all possible means. Indeed, you need to spend a lot of time and energy to repair your bad credit record. Here lies the importance of involvement of this type of service provider. They understand the basic rules and guidelines that are associated with this type of process and they should understand the ways to implement those particular rules to improve it as well as to allow you to save money in the best possible way. However, there is no formula to increase credit score instantly, but there are several instances where a proficient credit repair service provider can allow you to improve it to a great extent. This article will highlight on a few important responsibilities that are fulfilled by a proficient credit service provider.

The key function of this type of service provider is to remove mistakes from this type of report. These mistakes include the occurrence of errors at times of reporting the lenders as well as the occurrence of simple mistakes at the time of offering personal information to the lenders. If you think that there are multiple mistakes occurred in it, then it is advisable that you should get in touch with this type of provider to rectify your mistakes in the best possible way.

It is vital that you should verify every detail of your own credit report in the best possible way. For instance, if you have one negative item on this type of report due to the involvement of a lender who already left the industry, then there is possibility that the appropriate bureau would not get any sort of reply whenever they would call you to verify the details on the report. If such thing happens, it is advisable that you should immediately remove the detail of this type of lender from this type of report.

It is vital to remember that most of these service providers operate their business activities for the last three or four years. Therefore, it is expected that they possess relevant experience or expertise to be able to negotiate with the lenders in the best possible way. If you wish to improve it and if your lender wants to discuss this type of issue, it is advisable that you should take help of this type of service provider without any delay.