Start to Raise Your Credit Score Today!
The best way to raise your credit score is to make credit card, loan, and bill payments on time. If you are turned down for a loan you can get a written explanation about why you were denied. In order to avoid making late payments try the following
- Mark on the calendar when each bill is due, so you can pay them early
- Pay bills automatically
- Arrange to pay early when you are going out of town
- Make loan payments first, before spending on yourself. Missing a payment hurts your credit score
- Payoff credit card debt at the end of every month, rather than just paying the minimum
- Remember that credit cards are LENDING you money with interest
- Consistently maxing out your credit card may imply you have bad spending habits, and could decrease your credit rating
- Apply for credit only when you need it
- Choose a credit card with a low interest rate
- Pay more than the minimum
- Using a credit card responsibly can improve your credit score
- Budget your spending
- Track past due notices, if they are sent to the collection agency, it will have negative consequences on your credit rating
The above items can help you raise your credit score however,if you are having trouble paying off debt you should
- Call the lender before a missed payment to ask what can be done
- Consider getting expert help, a lender or creditor may be able to refer a credit counselor, however make sure the help you are seeking is legitimate. You can check by calling the Better Business Bureau or the state Attorney General
The following have major negative effects on credit ratings
- car repossessions
- bankruptcy(10 yr)
- foreclosure (7 yr)
If you have recently faced any of the above, you can explain why it happened to your lender, or you could wait a few years and reestablish a good credit score before applying for a loan.
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