Credit scores range between 300 and 850. The number you get depicts your spending habits. If you pay your bills on time, your score will be fine enough. Avoid debts, pay on time, and take credit less often for a good score. It goes without saying that a good credit score can empower you.
You must have seen ads on Spectrum TV by Spectrum Silver package or your local cable about maintaining a good credit score to qualify for big bank loans to invest in projects. Even individuals can avail of car loans or apply for a mortgage if they have a good credit history. A credit score above 670 is ideal. If you have a bad credit history then it’s going to cause problems for you. However, you can apply some fixes to reverse the damage. Read this blog to find out more.
Effects of Bad Credit
If you have bad credit then your business can suffer. It is no wonder that an interest-based system is bound to crush participants. Therefore, make sure to follow the necessary precautions. However, the following are the bad effects your business may need to endure if your credit score is bad:
- Credit and loan applications will be rejected
- Not allowed to rent apartments for visiting clients
- You will need to deposit securities even for utility bills
- Phone bills will be higher
- Higher charges to apply for insurance
- Loan applications will be rejected
Bad Credit Score – How to Fix It?
If you have a bad credit score then don’t worry. Just follow the steps below to get it in the ideal form once again!
Step # 1: Evaluate Your Current Condition
Start by checking your credit score. There are many online resources that will allow you to figure it out. You can also call your bank directly and request an evaluation. Once you know where you stand, you can think about the remedial steps. Do ask for an email report if you are planning to seek service from credit counselors.
Step # 2: Go Through Your Credit Report
Note that a credit report is not just a simple report containing only your credit score. It will also contain your payment history, credit utilization, type of credit use, credit inquiries, and the length of your credit history. Have a look at these factors in detail to get a thorough understanding of why your score is low.
Step # 3: Make Sure There are No Errors
It may happen that there are errors in your credit report. Therefore, it is important for you to go through it thoroughly. Make sure there are no spelling mistakes or discrepancies in personal information. Check if the usage dates are correct or not. Once, you note down any discrepancies then you can contact your credit managing company.
Step # 4: Pay Outstanding Payments
If there are any pending payments on your end, it is time to clear them. However, do note that this will take time as the credit score cannot improve overnight. Be patient but start clearing out your outstanding payments.
Step # 5: Increase Your Card Limit
If you think you’re capable enough to manage higher expense limits on your credit card then ask for an increase in your card limit. However, if such is not the case avoid this route. Normally, higher card limits, if balanced, can aid in higher credit scores.
Step # 6: First Clear New Credit Accounts
It is best to start by clearing your new account first. This will help you to improve their scores in a short amount of time. Once done, you can focus on the other ones.
Step # 7: Avoid More Credit Cards
Note that some people think applying for another credit card may fix the problem. No, it isn’t going to. You’re going to end up spoiling your credit number on it as well. First, clear your other cards.
Step # 8: Be Careful in the Future
Make sure that you pay your payments on time in the future. If you do, you can avail many facilities. And if you don’t, more debt and bad credit scores will haunt you even when you sleep!
It is wise to be aware of what’s going on with your credit card by maintaining a check online. Subscribe to good internet services by contacting Charter customer service rep or any other available in your area. This will allow you to keep an eye on your account. As a result, you will always know when a payment is due and keep your credit score in shape!