Repair a Bad Credit Score
Do you have bad credit?
A bad credit score affects many areas of life: from obtaining a new credit card, to securing a car loan, renting an apartment, or buying a house. It can even affect your job application. Fortunately, there are steps you can take to repair your credit score. Access a free credit report from Experian, Equifax, and TransUnion at annualcreditreport.com. Study it closely to determine what’s causing the damage. 5 key factors affect your credit score. Payment history is the most important, followed by the amount owed, length of credit history, new credit inquiries, and credit mix. Which category is a problem for you?
Do you know that one-fourth of Americans have an error in their credit reports? Errors and fraud can lower your scores and disqualify you from new credit. So, report any questionable activity. If you’re late paying bills, resolve to start paying on time today. Late payments can stay on your credit report for up to 7 years. So, the sooner you clean them up the better because new data will outweigh the past history.
How’s your credit utilization ratio? That’s your monthly balance divided by your monthly credit limit. A high utilization rate indicates possible problems. Lenders see this as being maxed out on debt. Aim to pay down your debts to 30% of your available credit. You can reduce that ratio by paying cash and not charging items you can’t afford to pay off at the end of every month.
And if credit cards have ruined your credit score, let Christian Credit Counselors help. They’ll create a debt management plan specifically for you. For more information call the Crown Helpline: 800-722-1976 or online at crown.org/ccc.