You’re not alone in terms of a low credit score. Millions are struggling with this. In America, our credit score is deeply intertwined with our daily lives. You may need to buy a car, rent a house, get a job, or take outa home loan. What would be considered first in these cases? The answer is your credit score.
So, what’s your concern now? Having a low credit score? No worries. You can easily fix your credit score by yourself or by hiring a credit repair company.
Let’s explore the detailed procedures.
Start with Finding Out What’s Hurting Your Score
The first step of fixing anything is finding the problem. In terms of credit score, you need to do the same. Get a free copy of a credit report from three major credit bureaus: Equifax, Experian, and TransUnion at AnnualCreditReport.com. Read the report carefully to identify any inaccuracies, such as late or missed payments, high credit card balances, collections or charge-offs, Duplicate Accounts, or excessive recent credit inquiries.
Dispute the Inaccuracies
Just after finding out the inaccuracies, dispute them with the credit bureau as soon as possible. Submit all of the necessary legal papers to prove your claim. The process will take some time. Wait patiently.
Build Consistent Payment Habits
Many people think that only full payment is essential. Timely payment is not a significant concern for them because they are paying off their entire debt, regardless of whether it is 2 months late or 3 months. However, the reality is that this habit is severely damaging your credit score. You are paying off the entire debt, but a “missed payment” is still being recorded in your credit history. You should know that even one missed payment issue remains on your credit report for 7 years, which is undisputable, provided the information is accurate.
So, to avoid missed payment or late payment issues, set reminders on your phone or start an autopayment option. Your consistent payment history will build the trust of lenders on you and it will slowly boost your score.
Lower Your Credit Utilization rate
Some people fail to utilize their credit properly. Using too much of once available credit hurts credit score badly. Experts suggest to keep your credit using rate under 30% of your available credit limit, and under 10% if possible. Also, pay off the cards with the highest utilization or interest rates.
Stop Applying for New Credit
Avoid applying for new credit repeatedly within a short period of time. Each application requires a hard inquiry, which stays on the credit report. Additionally, how to fix a low credit score? this attitude can negatively impact one’s credit history. Lenders consider them irresponsible credit card holders. So, could you stop doing this while rebuilding your credit?
Consider Credit Building Tools
If you are struggling with a too low credit score which is stopping you from qualifying for a traditional credit, consider a secured credit card or credit builder loan. These tools are designed to get rid of bad credit history or low credit score. It helps to build a positive payment history.
Get Professional Help
Many people struggle to repair their credit on their own. In that case, they hire professionals to rebuild their credit. Please feel free to let me know. You can find a trustworthy company.
Whether you live in Florida, New Jersey, California, Pennsylvania, or Virginia, an experienced team of the Great American Credit Repair will guide you in completing the credit rebuilding process with legal activities.