Don’t let your past ruin your future. Your past credit history could be a major obstacle for your future. It could be stopping you from obtaining loans, buying the car you want or the house you want to live in.
You need good credit to qualify for loans. If you want to buy a fancy car, buy a house or a boat, all the financial institutes and creditors would be looking at your past credit history. Fixing your credit history is similar to losing weight. You might have picked up a few extra pounds of late payments, due bills or maybe went through some financial catastrophes, it can all be fixed, but it will never happen overnight.
“While crash diets don’t usually work and can be unhealthy, it is possible to change your credit score fairly quickly. But just as with weight loss, “quickly” is a relative term.” – 11 Ways To Raise Your Credit Score, Fast | Forbes
Fix your negative credit history
Fixing your credit history and improving your credit score takes time. But you have to do something about it. Fixing credit needs hard work and will probably take months before you see positive results.
“Nothing will change at all if you just sit there on the couch, eating Cheetos and charging items on the Home Shopping Network. So get moving!”
To improve your credit history, the first thing you need do is to erase your negative credit history reports and catch up on your bills. To improve your credit score significantly so that you will qualify for loans, you will need to rebuild your credit.
Rebuild your credit
Rebuilding your credit is never easy or quick. However, it’s possible. You will have to prove to the credit agencies that you are responsible with your finances. You might feel that it’s difficult at first, but once you get started, you will feel the momentum.
Getting new credit
If your past credit history made you lose your old cards, the first step to rebuilding your credit record is getting a credit card. Don’t get discouraged if credit cards got you into a financial situation in the first place. Using credit cards the right way will surely rebuild your credit score.
It could be difficult to get approval for new credit cards with poor credit score. However, you should consider getting prepaid cards or secured credit cards at first, which are easier to get and gets you in the habit of using cards sensibly. Secured cards and store credit cards also build your credit score. Getting a credit card with bad credit is easier than you think.
Check for errors
Get a copy of your credit report from any of the credit reporting agencies and check to see if they are accurate. Mistakes happen. You can dispute errors online through TransUnion, Equifax, and Experian
Raise your credit limit
Once you get into the habit of paying off your credit cards on time, you can ask your creditors to increase your credit limits. Once you start building a good reputation, there will be other creditors offering you better rates and more credit line. Just make sure to use your cards sensibly.
Hope you will able to benefit from these tips and improve your credit score. Once you improve your credit score, you will be able to apply for bigger loans and higher credit line.
To learn more about building your credit and managing your finances, call us at 303-495-3705 or Click here to book a meeting with us.
Have a questions or comment? Please add them in the comment box below or visit our Facebook Page. We’d really appreciate it.
Source: Balanced Life team
