How to Fix Bad Credit and Improve Credit Score

credit score improvement

Living with a bad credit history may sound as frightening as ghosts and goblin, but it is the challenge people facing these days.

Many times people find their credit situation in dire straits. Therefore, it is imperative to know how to mount the pile of debts and get out of this situation.

 

Whether one wants to apply for a car or house renovation to get a finance loan, credit score holds the utmost significance. So, let’s dive right in and understand what credit score is.

Credit Score: A Better Understanding of the Subject

Credit Score, a three-digit number, shows the creditworthiness of a person based on the credit reports, which includes credit history. Credit Score starts from 300 to 850. Here is how to classify an excellent credit score:

  • 300-630 – BAD CREDIT
  • 630-689 – FAIR CREDIT
  • 690-719 –GOOD CREDIT
  • 720-850 – EXCELLENT CREDIT

A credit score depicts the pictures of your credit history to help lenders know how likely you are to pay back the borrowed money. Therefore, it would not be wrong to say that credit history influences our lives largely.

Time to Repair Your Poor Credit

People are always suggested to keep an eye on their credit scores because it checked when applying for a loan or looking for a job or a room for rent. You can find many websites offering a free credit report to help you know the loopholes in your credit history. It would be a good idea to look for a credit repair specialist to help you get the finances in order.

Now, let us look at some of the best tips to help you fix bad credit history.

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Start Making the Payment on Time

Making the payments on time is the first thing you need to do to increase the credit score. Many financial institutions consider payment history as a measure of determining their credit score. Paying all the bills on time takes into consideration things like student loans, utility bills, and other pending payments. We recommend you instead visit a credit repair specialist to get the financial affairs to improve your credit history.

AutoPay Feature

We recommend you utilize an autopay system to make the payment so that you can pay the minimal amount of the pending payments. It will directly deduct the said amount every month on a specific date, and you might even get a discount for timely payments.

Credit Repair Services

Often many would find themselves stuck in a financial jam, but if the case is such that your credit situation needs a rescue or you are on the verge of bankruptcy, it is time to connect with a ,credit repair specialist. With the right credit repair expert by your side, there is no stopping you from repairing the bad credit history.

Do Not Open Multiple Accounts

Credit companies also look at the person’s credit inquiries, including any application for new financial products and services for credit limit increase. It would be a good idea to avoid making such inquiries as it would dip the credit score even further. In short, you should apply only for what you need to prevent any further damage to credit history.

Be Attentive to Credit Utilization Rate

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The credit utilization rate is the credit card balance divided by the total available credit. In case your CUR is above 30%, and you are paying bills on time, there would not be an issue with the credit history.

The Epilogue

That’s the scoop on fixing bad credit. It is whimsically essential, so Don’t fall prey to the quick, easy, and overnight credit repair snare.

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