Connect with us

Finance

Get Your Credit Score Out Of The Gutter

Get Your Credit Score Out Of The Gutter
According to the latest on Credit.com, while the average US credit score is a healthy 693, over 61 million Americans struggle with subprime credit scores, also known as bad credit.
Are you one of them? Chances are very good that either you or someone you know is in the subprime credit abyss. Climbing out is not an easy task, but it isn’t impossible.
Here’s a few tips below that can make the long slog back to the land of good credit a little easier to endure. Not sure it’s worth the trouble? According to Bankrate.com, the average lender may offer better rates to customers who have a credit score of over 700.
If your credit score falls short of that number by even a few points, that could cost you thousands of extra dollars in interest on a big-ticket purchase.

Start With Your Score

For starters, get an idea of where you are on the spectrum by checking your credit score; if it’s above 760, you don’t need to worry about improving it, you are already where most people want to be! However, a credit score lower than 700 is undoubtedly worth the effort you might have to spend improving it.
Thanks to the Fair and Accurate Credit Transactions Act, the big three credit bureaus are required by law to give you one free annual credit report with your score, no strings attached! Don’t believe it? Check it out here for yourself: http://www.equifax.com/CreditReportAssistance/

Try Something New

Once you have your score in hand, you can start to experiment with various credit building strategies (e.g. paying down account balances) using a credit score simulator on the internet. Another thing you can start out with is to identify potential errors on your credit report, such as “late” payments that were not actually paid late, but were paid when due. This happens more often than you might think.
Often you can call the lender and get it cleared from your report. Going forward, it’s also important to pay down balances on your credit cards, because paying debts early and keeping balances low can improve your credit score quite a bit in just a month or two. You can help keep your balances low by spreading out your charges between credit cards, especially if one of them is getting close to being maxed out.
You might also want to set up payment reminders to keep you aware of when payments are due, or even automatic payments. Of course, an even better (ideal) plan is to just pay most (or all) of your charges ahead of time, if you can afford to do that (Bankrate, myFICO).
However, one thing that is not advisable is to close an unused account just to try to improve your credit score; you will have less total available credit if you do so, and that could make it appear as if you are closer to having your accounts maxed out, which could actually hurt your score instead of helping it (Bankrate).

A Last Resort – Credit Re-Scoring

There is a final, last resort method to consider if you’re in need of a very quick credit score boost, and that is rapid re-scoring. The score boosting strategies we’ve covered so far are relatively quick, taking only a month or so to give positive results, but rapid re-scoring is much quicker; in fact, rapid re-scoring can lead to positive results within 72 hours (Bankrate).
This makes it a good option if you’re needing a mortgage and you have a lender that is a customer of a rapid re-scoring service; the process will typically cost you $50 and involves rectifying any unpaid balances or outstanding errors on a given account (other negative data that may be on your report, such as late payments, is unaffected by rapid re-scoring).

Get Back On Track

There are numerous roads to take to get your credit score out of the gutter and back in the 700s. However, there is no magic bullet that will fix it all. The important thing is to be consistent, pay off your bills on time, and be patient; you should gradually see improvements in your credit score within a few months, and be back on the road to low rates and no debt in no time at all!

Citations:
  • Curry, Pat. “Tips for boosting your credit score.” Bankrate. Web. 13 August 2013.
Featured images:

License: Image author owned
Written by David Leiter (with article contributions by Dan Sem) works on a marketing team as a freelance writer for Billy Bob’s Repair and other oil field and housing-related companies.

Continue Reading

Recent Posts

Business3 days ago

Business Tips For Protecting Your Finances During A Recession

In 2024, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Green & Energy2 weeks ago

Air Conditioning Installation: What You Need to Know

When it comes to getting an air conditioning unit installed, can significantly improve your comfort and home environment, especially during...

Marketing2 weeks ago

Marketing Tips For A Gym Wear Brand

When starting a gym wear brand, there are a few things you need to do and one of them is...

General1 month ago

Social Media Marketing: What Are All The Types?

Social media marketing is a tool that is a must-have in today’s digital age. it’s very rare that businesses can...

Business1 month ago

How To Become A Property Developer

There are several reasons why an individual will want to become a property developer. One of the main reasons for...

Business2 months ago

Remote Delivery Innovations: Case Studies from Leading E-commerce Brands

People have gone through much change in the past few years when it comes to online shopping. Nowadays, when delivery...

Business2 months ago

Why are Brits turning to online-only banks?

For years, large, conventional banks held all the aces when it comes to citizens’ finances in the UK. HSBC, Lloyds...

5 Important Web Design Considerations to Make For Better SEO 5 Important Web Design Considerations to Make For Better SEO
Tech3 months ago

5 Important Web Design Considerations to Make For Better SEO

Ever since the birth of search engines, practices in optimising websites for better search rankings have changed considerably. Where it...

SEO3 months ago

The Importance of Local SEO for Small Businesses

There are many different types of businesses and all of them will require online marketing however, with a small business,...

General3 months ago

Understanding The Unsung Heroes: Cool Rooms And The Importance Of Regular Repairs

Everybody loves a breath of fresh air when entering a superstore! But have you ever wondered who’s working backstage to...

Home Improvement7 months ago

How To Add More Value To Your Home

If you have some spare cash in the bank, it is likely you would like to spend it on your...

Lifestyle7 months ago

What is a Deep Plane Facelift

Cosmetic surgery is a choice that needs a lot of research and when it comes to thinking about a facelift...

Entrepreneur7 months ago

Unveiling the Demand for Digital Marketing Courses: A Comprehensive Analysis

In recent years, the realm of marketing has undergone a seismic shift propelled by the digital revolution. As businesses increasingly...

Home Improvement7 months ago

What Does an Effective Wardrobe Spring Clean Entail?

Spring is upon us which means one thing and one thing only. It is time for the annual purge of...

Business8 months ago

Your Basic Guide To Creating A Unique Investment Blog

Starting your own blog is great and once you get the ball rolling, it can be a good passive income...

Categories

Archives

Trending