If there is one significant thing that you need to know about your credit score rating, it would be that it greatly reflects who you are as the borrower. It may just be numerical value or data to you, but your financial opportunities lie in it. That information could give any potential lender an impression on how good or bad you are in keeping your finances.
If you happen to maintain an excellent credit score rating, you would more likely acquire approval for any loan and credit card applications. Here’s the catch: this approval comes on the best terms. In other words, a credit score rating could make or break your chances of living in your dream home or driving your fantasy car. Here are some tips for that stable credit repair that could help you get that good credit score rating you’ve been trying for:
Yes, you heard it right! You have to make sure that you stay current on your credit card monthly dues. A missed payment can do damage to credit standing, and it would remain there for years. Once you disregard it, it would only result in a snowball effect. You would be having a hard time catching up with settling your financial obligations when everything goes downhill.
In the credit world, there is what we call credit age which refers to the length of time of your existing credit card accounts. If you have old credit accounts and they are in good standing, then this would leave a positive impression on potential lenders. In addition to that, if you have old accounts where you’re current on your payments, it’s a plus point on your credit utilization. This would raise your credit power and enjoy the privilege of immediate approval credit card and loan applications
One thing that credit holders tend to disregard is going through their credit report. Now, this should be part of your monthly obligations as your credit report would reveal to you if there are any inconsistencies. There is a possibility that you would end up with credit report errors that are caused by mixing of accounts with another person with a similar name, identity theft occurrences, or balances that shouldn’t be there as you’re always current on your payments.
What you need to do is to ask for copies of your credit reports from, at least, three major bureaus and review them for any errors. If you found one or more, make your disputes with these bureaus and clean up your record. It’s not easy and fun, but it sure would give you peace of mind.
With so many luxury temptations out there, sometimes you can’t resist these temptations and end up mismanaging your spending resources. What would be worse is one of these resources are credit cards which are the most convenient way to pay or buy whatever you want. You should be on your guard every time you get the urge to go on an extravagant shopping spree.
To avoid overspending, you may call your creditors and request to decrease your credit limit. In this manner, you’ll discipline yourself with spending only what you’re capable of paying. This will lead you to live within your means.
If you have appropriately managed multiple debts especially in the first two years, this will contribute to a good credit report. Do maintain that and show to your creditors and lenders that you can handle such financial responsibilities. However, don’t make the mistake of applying for new accounts as this could potentially damage your credit report temporarily. This would leave your creditors questioning if you can still handle more revolving debts while always balancing the first few accounts that you have acquired. Learn how to space out your applications so that you can give potential creditors and lenders a clear picture of how good you are in managing your finances.
Keep in mind these credit repair tips as you work out a good credit score. This journey won’t be easy as it requires discipline, determination, and perseverance on your part. Nevertheless, the effort that you put forth on this endeavor would, later on, yield benefits that you can enjoy in the long run. If you can do this, then you’re on your way to financial empowerment. Remember to keep a track of your spending as you go to help improve your chances of success.
So, are you ready to start your journey to fixing your overall bad credit? Visit AAACreditGuide’s article on how to fix your credit here.