Low credit scores can be a challenge for many people. Bad credit is a slippery slope and can put you in a financial hole that may be difficult to climb out of. The first step to increasing your credit score is to know where you stand. Pulling your credit report and carefully reviewing it will show you what is on your report – the good, bad, and ugly.
One of the biggest roadblocks out of bad credit is not qualifying for new credit lines to help with debts or financing an unexpected purchase. Depending on the state you live in, other consequences can include difficulties getting approved for rental applications, new phone or insurance services, and even some job offers, depending on your credit report.
The best ways to increase your credit score are to stop adding debt to your revolving credit accounts and paying your lenders on time, every time. No two factors account for more of your total credit score, a measure of your creditworthiness to financial institutions, than your payment history and your credit utilization.
Having a solid payment history shows lenders you are a responsible borrower. Carrying low balances on revolving accounts also portrays a command of your credit accounts. Additionally, increases to credit limits and paying down balances can help reduce your credit utilization. Lastly, combing through payment histories and your credit report as a whole to ensure accuracy can make significant increases to your total score. Studies have found that one in five consumers have errors on their credit reports, causing their score to drop and, in some cases blocking their access to credit.
How to Deal with More Significant Issues
If you cannot afford to pay your accounts each month, the time to act is now! The longer charges are late, the more derogatory marks, collections, and other negative hits your credit will take. While it will take time to repair, you can stop incurring more damage by starting your credit recovery journey today!
However, if you have found an error on your credit report, you will need to repair your credit report. Credit repair is the process of identifying mistakes or information that is inaccurate and filing a dispute with the credit bureau to remove it from your report. Errors and inaccuracies don't just go away, so it is important to take action!
Working Through Credit Repair on Your Own
Credit recovery is hard work and can be time-consuming, not to mention mentally taxing. There are many resources available, including our experienced credit recovery professionals, that can help you understand and take control of your credit journey.
Credit Helpers Can Help You Get Back on Track
When you need help repairing your credit and meeting your financial goals, Credit Helpers will be here for you! Our professional credit experts are available to help you make your credit repair journey as painless as possible. Planning, execution, and celebration, we are there with you every step of the way!