The effects of a low credit score are directly connected to your loan approvals, interest rate, rent or buy an apartment, get a job, buy a car etc.Many residents don’t even realize how their financial stability is being crippled due to low credit scores.
Great American Credit Repair help people in controlling their credit scores and fixing it with their experts.Below, you will get a breakdown of what’s hurt your score.
Late or Missed Payments
Late or missed payment is one of the vital reasons for a low credit score. One missed payment lowers 50-100 points within a short time. So, timely payment is a very important aspect if you want to fix your credit.
How to Fix It:
- Try to set a reminder or activate automatic payment options. or reminder
- Negotiate with the creditors if you’ve already missed a payment. Sometimes creditors remove the inaccuracies using the “good will adjustment” policy.
- Contact the professionals or hire a credit repair company to dispute inaccurate late payments and get a better debt management plan from the consultants.
High Credit Card Balances
Credit utilization is not everyone’s cup of tea. Your credit score will be decreased if you use too much of your available credit.
How to Fix It:
- Keep your credit using rate less than 30% of your credit limit.
- Negotiate with the creditors to increase your credit limit (Don’t increase the credit using rate).
- Pay down debts (highest interest first) to clean your image and apply for increasing your credit limits.
Collections and Charge-Offs
Once your accounts are sent to collections or written off by lenders, they can have severe negative impacts on your credit report. It can stay on your credit report for up to seven years. Even payment after the incident can’t remove this from your report. What Hurts Your Credit Score?
How to Fix It:
- Check regularly to find out the inaccuracies before sending them to collections.
- Dispute inaccurate or unverifiable collection entries as soon as possible.
- Request that the debt collectors remove your collection accounts from the report in exchange for payment of the debt. It’s called pay-for-delete agreements. What Hurts Your Credit Score?
- Credit Repair Companies like Great American Credit Repair can guide you through legal policies.
Too Many Inquiries
Too many inquiries within a short time are harmful for your credit score. So, don’t apply for a loan or credit card again and again within a short time because it lowers your credit score.
How to Fix It:
- Apply for loan or credit when it’s really necessary.
- Shopping for a new auto or mortgage loan or a new utility provider within a short time frame (typically from 14 to 45 days) makes multiple inquiries counted as one inquiry.
- Identify and dispute all the unauthorized or incorrect inquiries in your report as soon as possible.
Errors on Your Credit Report
Errors like duplicate accounts, incorrect information, incorrect payment dates etc. are the reasons for your continuous and unfair reduction of credit score. Studies found that nearly 79% of. Credit reports contain errors due to the unconsciousness of the credit holders. What Hurts Your Credit Score.
How to Fix It:
- Get a free credit report from all three bureaus at AnnualCreditReport.com.
- Identify outdated, inaccurate, or unverifiable information.
- Contact the credit experts to dispute the inaccuracies legally.
Bankruptcy or Foreclosure
Bankruptcy or Foreclosure is such a negative mark on a report that can harm your credit reputation badly and it stays on a report for 7 to 10 years.
How to Fix It:
- As the very first step, know the detailed information of these issues. You can’t remove the bankruptcy from your report if it’s not an error, but many tradelines can still be disputed if those are errors.
- Rebuild your credit with secured credit card, take installment loans, and start paying them timely to get back the reputation and trust.
Hire and consult a credit restoration service to find out your post-bankruptcy options and follow them strictly.
Fix Your Credit the Smart Way with Great American Credit Repair
Great American Credit Repair is not only a service provider, it’s a name of trust in which people can comfortably rely on for their credit repairing.
Great American Credit Repair works with the Fair Credit Reporting Act, which protects people from inaccurate and unverifiable information. We don’t believe in waiting 7 to 10 years to improve your credit; rather, we clean your credit report quickly and effectively using the Fair Credit Reporting Act.