Living with a bad credit score likely results in higher interest rates on auto loans and credit cards, and some mortgage lenders will not approve you for a loan with a low score. Fortunately, credit repair can help you get the credit that you deserve. Several techniques can help you build a better score.
Remove Blemishes From Credit File
Blemishes or mistakes on your credit file do hurt your credit rating, and removing these mistakes is one way to quickly repair your credit and qualify for loans. Credit report mistakes can range from outdated information, unknown credit accounts and unknown delinquencies. These errors can stay on your report unnoticed for years and lower your credit score. Checking your report annually and disputing erroneous blemishes help you maintain a good score.
Reestablish Credit After Bankruptcy
Acquiring and improving credit after a bankruptcy is the only way to prove creditworthiness and qualify for prime loan deals in the future. A bankruptcy erases your previous debts and gives you a fresh start. Regrettably, a fresh start comes with a hefty price; bankruptcies can completely destroy your credit rating. Getting a secured credit card from your bank or applying for a bad credit auto loan gives you the opportunity to reestablish credit and rebuild your history and score.
Diversify Credit
One type of credit account isn't enough to build a good credit history. Credit scores improve quicker when you acquire different types of credit. For example, you may have a couple of credit cards and then choose to add an auto loan or personal bank loan.
Reduce Debts
Paying off your credit cards is a quick way to add points to your personal rating. Low credit card balances do not negatively impact your credit score. Quite the opposite, carrying large balances from month to month or maxing out your credit cards reduces your credit score, which can lower your chances of getting financing.
Quick Updates
Creditors update credit reports at different times. However, if you are in need of a quick update to repair your credit fast, creditors may offer a service termed rapid rescoring, where they agree to update your credit file within 72 hours of your request. This fee-based service ($50) benefits you if you recently paid off an account or noticed an error on your credit file and need this information corrected quickly in order to qualify for a loan.
0 comments:
Post a Comment