Finance

How To Fix Your Credit Score

Having good credit is very important as it opens you up to a number of great opportunities. For example, if you have good credit, you can easily get a mortgage to buy that dream house you’ve always wanted since you were young. Having good credit also gets you access to business loans that could pretty much change your whole life. With good credit, you will always receive better terms for any loan you acquire. Having bad credit isn’t the end of the world, as there are plenty of ways to fix that and make yourself more appealing to lenders. Wondering how to fix your credit score? The following tips might be helpful.

 

Check Your Credit Report for Errors

Assuming you’ve received your credit report and seen what exactly needs fixing, you might want to first start by checking if there are any errors. This includes things like your name being misspelled, duplicate accounts, missing accounts, accounts that don’t belong to you, or any general inaccuracies with the report. Such errors could have a significant bearing on why your credit score is so low, so fixing them could go a long way in improving it.

 

Pay Late Accounts

If you have any debts that are late or past their due date, you need to make arrangements to try and settle them. Late payments are those considered to be at least 30 days past their due date. Remember that the longer your debt remains unpaid, the worse it is for your credit score, so it is important to settle these accounts as early as possible to keep your chances of getting good credit reviews.

 

Increase Your Credit Limits

Every borrower has a certain credit limit issued by their credit card company. Having a higher credit limit means that your credit card company trusts you with more credit which translates to a higher credit score. If you think that your creditworthiness is higher than the amount stipulated by the credit card company, then you can request an increase in the limit. If your request is accepted and your limit is raised, best believe that your credit score will also increase by a proportionate margin.

 

Pay Off High-Interest, New Credit Accounts First

A low credit score means that you might have a few unsettled accounts. As mentioned earlier, settling these accounts could go a long way in fixing your credit, but there’s a way you can make the most out of this bad situation. Start by paying off the account that suffers from the highest interest rate. This way, you will be mitigating the damage done. Alternatively, you can pay off the new accounts first because they have a lower balance and hence can be easy to clear quickly. This leaves you with one less account to worry about.

 

Anyone looking for ways on how to fix their credit score should look at the tips above. They have been outlined by professionals in the industry so in a way that accounts as inside information which could benefit you a lot.

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