Because the effects of lower credit scores are so far-reaching, finding a way to increase your credit scores is essential. These are some of the easiest steps that you can take to improve your credit rating.
Correct Erroneous Information
There are instances when names and Social Security numbers are entered incorrectly, and this can result in false information being reported on your credit report. This can be a hassle to deal with, but correcting the erroneous information can result in an instant boost to your credit rating. However, it can take a few weeks or even months for the correction process to be finalized.
Establish Good Payment History
Late payments are one of the most common reasons why individuals have bad credit scores. Payments show up as late on a credit report when the payment was made more than 30 days past the due date. Credit rating agencies look at the fact that you had late payments, how late the payments were and how long it has been since your last late payment.
You cannot remove the late payments, but you can allow them to age by making timely payments going forward. If you do not currently have accounts that you can make payments on, consider taking out a bad credit car loan through a company like AutoStart. With this loan in place, you can re-establish a good payment history.
Pay Outstanding Balances
You may have outstanding balances, such as from a tax lien or a collections account, showing on your credit report. These issues will remain on your credit report for seven years, but they damage your credit scores more significantly when you have not paid the outstanding balance. Simply paying the money that is owed is essential if you want to increase your credit rating quickly.
Reduce Debt Balances
Another factor that affects credit scores is the debt balance that you carry. When your account balances are close to or over the credit limit, your scores are reduced. A good rule of thumb is to reduce debt balances to less than 50 percent of the available credit. You should later try to pay off the entire debt to enjoy much higher credit scores.
Your credit rating is a direct reflection of your ability to properly manage your finances. If you have trouble making payments on time, this is a sign that you need to scale back your lifestyle and eliminate some or all of your debts. For more in-depth information about improving your credit score by reducing debt, visit creditrepaircompanies.com
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repairing your credit guide
- Carolyn Warren
- Publisher: Bookmark Publishing
- Edition no. 2 (02/15/2016)
- Dave Ramsey
- Thomas Nelson
- Kindle Edition
- Anthony Davenport
- Publisher: Mariner Books
- Edition no. 0 (01/01/2019)
Last update on 2020-02-24 / Affiliate links / Images from Amazon Product Advertising API
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