Bad credit not only makes you feel depressed, but also blocks all the opportunities related to credit. You must face higher interest rates on loans, which may cost you thousands of dollars over time.
But don’t worry. We have good news for you. You can improve your credit with the credit repair process. An improved credit with a higher credit score will ensure lower rates on loans and better opportunities.
What can Unlock Lower Rates?
Lower rates are connected to good credit scores. On the other hand, higher rates are connected to lower credit scores. If you want to unlock lower rates on loans or credit cards, you have to have a good credit score. Only a credit with a good score can ensure lower rates.
How does Credit Score Shape Rates?
Credit score is a three-digit number that determines the financial growth of a person. It acts like a signal to the lenders about whether the borrower is risky or not in terms of paying off debts. Let’s learn how a credit score shapes rates.
- A low credit score brings high interest rates on loans and credit cards. On the other hand, a good credit score ensures lower interest rates.
- Sometimes loan applications get rejected due to low credit scores. Later, some creditors agreed to lend at higher interest rates.
- Some low-credit-score holders face higher rates because of less negotiating ability.
- A low credit score represents you as a risky borrower to the lenders. That’s why they charge higher interest rates to cover the risk.
But the good thing is that a small improvement in your credit score can decrease the rates.
Start Improving Your Score from Today
You can start improving your credit score from today by following some step-by-step procedure. The process includes:-
- Reviewing Credit Report: Download a free copy from three major credit bureaus: Experian, Equifax, and TransUnion at AnnualCreditReport.com. Identify the errors or mistakes that are hurting your credit score. Report the errors to the credit bureau with proper documents if the information on the report is wrong.
- Paying Timely: Don’t forget to pay bills on time. Payment history is responsible for 35% of your credit score.
- Reducing Credit Utilization: Don’t use your credit balance more than 30% of your available credit. Make it 10% if possible. If you have already used your credit, try to adjust the amount as soon as possible. It will represent you as a responsible credit holder.
- Avoiding New Accounts: You shouldn’t open new accounts while you are rebuilding your credit.
Using Credit Builder Loans: You can use credit builder loans to prove yourself as a responsible and positive credit user.
Contact Great American Credit Repair if Necessary
Goals are never achieved on their own. You have to take action to achieve them. Rebuilding or boosting your score may feel like a hassle if you do it by yourself. You might be lost in the middle of the credit rebuilding process. In this situation, feel free to hire an expert who can boost your credit score by following all the processes with laws and regulations.
Whether you live in Florida, New Jersey, California, Pennsylvania, or Virginia, an experienced team of Great American Credit Repair will guide you in completing the credit rebuilding process with legal activities. Great American Credit Repair has been helping people fix their credit since 2008.
So, call the Great American Credit Repair today and break free from bad credit.