Easy Ways to Improve Your Credit Score
If you’ve discovered that your credit score isn’t in good shape, you might find that it’s hard to make large purchases. For instance, those with poor credit scores who are hoping to buy a car may have issues securing the necessary financing they need for the purchase. As a result, you’re required to pay higher interest rates, and this ultimately has another negative impact on your financial situation. It’s a vicious circle that seems to have no resolution.
Fortunately, there is light at the end of the tunnel. If you’ve been struggling with poor credit, there are some simple tips that you can keep in mind as you’re looking to improve your score. Below, we’ve provided some steps that you should follow as you’re looking to rebuild your credit. Sure, you may currently be in pursuit of a bad credit car loan in Louisville. However, by taking these tips to heart and improving your credit score, you’ll find that your entire financial situation is drastically improved…
We all make mistakes, and this sentiment includes those companies that compile your credit score. Therefore, it’s of the utmost importance that you’re constantly monitoring your score for more than just any increases or decreases. Rather, you’ll also want to keep an eye on any discrepancies that may pop up. For instance, a lender may report an on-time payment as late, or they may categorize a barely-late payment as egregiously late. While these mistakes may not seem all that significant, they can actually play a relatively big role when it comes to influencing your overall credit score. While you won’t want to consistently make inquiries into your credit score (ultimately, consistent requests to view specifics could also lead to negative consequences), occasional checkups should allow you to stay up-to-date on any worrisome indiscretions.
Understand Where You Need Improvements
Predictably, it takes a lot more than recognizing your financial issues if you’re hoping to improve your score. Rather, you’d have to recognize where you went wrong, and then you can work to improve these apparent issues. For instance, if your credit report is full of late payments, you may want to be more vigilant when it comes to completing these payments in a timely manner. If you tend to be late due to being absent-minded, you should consider setting monthly reminders on your phone, or you could have the lender automatically withdraw money from your account each month.
Meanwhile, if you’ve found that you’re constantly using up the maximum amount of allotted money on a particular credit card, you may want to work on limiting the percentage you’re using (which can have a positive or negative effect on your score). You could also consider asking your lender for an increased allowance, as this lower “percentage used” will look a lot better on your credit report. Ultimately, it’s best to use these lines of credit as emergency contingency plans. If you’re signing up for credit cards and immediately depleting your max allowance, you may want to rethink your financial strategy.
Devise a Plan
Once you’ve pinpointed where you’ve gone wrong, it’s time to start working on improving that overall score. Well, instead of just trying to pay off all your random pieces of debt, it’s best to devise a game plan to assure that you’re maximizing the entire process. For instance, you may want to zero in on the various accounts that have higher interest rates, as these will ultimately cost you the most amount of money in the long run. You may also want to rethink your payment strategy and compile a plan that will see you paying off these various accounts in the timeliest manner. You might be discouraged when these plans don’t lead to immediate success. However, before long, you’ll start being benefits from your frugal, money-conscious game plans.
Ask for Forgiveness
While this step of the process has varying degrees of success, it may still be in your best interest to see if a lender or credit card company is willing to forgive a missed payment or similar indiscretion on your credit report. These companies tend to have all of the power when it comes to determining your credit score, and you may be able to negotiate a deal that works for both sides. Either way, if you’ve constantly proven that you’re more than capable of competing your payments in a timely manner, there’s a good chance that the lender is willing to ignore this rare issue.
Now, this may be more of an unorthodox concept, but you can vicariously improve your credit score thanks to the financial savvy of a friend or family member. By becoming an authorized user of someone else’s credit card, you’ll find that both your credit scores are capitalizing on the accompanying benefits. If they make their payments in a timely manner, this could help do wonders for your score, even if you have no influence on the payments.
Of course, this requires someone to trust you and take a bit of a risk. Realistically, you could convince someone to let you join their credit card, and then you could use that credit and make some pricey purchases. Well, as a result of this risk, you’ll have to convince the individual that you’re not after their money… you’re simply looking to benefit on their credit wherewithal.
Many consumers find that their credit report is in disarray, assume there’s nothing they can do to get out of the gaping hole, and then proceed to live their lives in financial turmoil. Fortunately, as you’ve learned, there are a number of logical solutions that can help you improve your overall credit score. Those with sparkling credit reports tend to receive more financial benefits, especially when they’re making pricey purchases like cars or houses. As a result, there’s undoubtedly a benefit to following the tips above and working hard to improve your overall score. Trust us… you’ll be thanking us before long.