Are you having a problem with your credit? Do not panic. You are not alone. Many people are having problems with their credit but the good thing is there are also many ways to fix it.
Your credit score says all about your financial health. Fixing your credit score is not as hard as you think; however, you need to know what needs to be improved and what things to do in order to make your credit better looking.
Are you ready to fix your credit? Jump in to get started.
Who Can Help in Fixing My Credit?
The first option you have is yourself. You can fix your credit all by yourself. You may also check some credit fixing companies to help you with your credit dilemma.
Keep in mind that poor credit does not stay forever (unless you don’t take any action to make it better).
Here are tips to repair your credit easily and quickly:
- Get a Free Credit Report
Each major credit bureau (i.e., Experian, Equifax, and TransUnion) is mandated by law to give a free copy of your credit report once every year. You can pull out your copy from their website at www.annualcreditreport.com or call them on their respective contact numbers.
- Dispute Negative/Questionable Items/Records
Once you have your credit report, review it for erroneous entries. Check if there is any hint of negative information or incorrect items that may damage or stain your credit score.
If you believe that the information in your credit report is inaccurate then write a dispute letter and send it to the credit bureau the soonest possible time.
- Stop Bleeding Money
Get a sense of how much you earn. , Compute all of your expenses including your tax returns and you will see your net worth. If you are overspending then limit yourself.
For example, if you are spending $400 a month for food then try to lower it to spending $350 a month.
You can do this by leaving behind unnecessary food items or by choosing a lesser-known brand in lieu of your favourite product.
- Make On-Time Payments
Making regular payments leaves a big impact in your overall credit standing. Your payment history will affect your credit score if you fail to make regular payments. It is one of the easiest ways to improve and maintain your good credit rating.
Paying bills on time is not a hard thing to do but many people take this for granted. Either they don’t know how to manage their credit properly or they have a financial problem and don’t know how to deal with it.
- Keep Credit Utilization Low
Credit Utilization Ratio is the amount of credit that you are currently using divided by the total amount in your credit limit.
Based on credit experts, the safe credit utilization ratio you may use is at 30%. But this doesn’t mean that you can’t use your available credit limit in your account.
We suggest that you make it as low as possible so that you end up with good credit.
- Open a New Secured Credit
You may open a new credit account to help you improve your credit. However, keep in mind that you are getting a new credit account to fix your score and not to acquire additional debt. Likewise, consider banks that do not charge an annual fee on their credit cards since this will help you a lot in saving money.
What to Do Next?
If you are still in the rut and cannot stop asking, “Who can help me fix my credit? ” then continue reading because the next topic below is especially dedicated to you.
Credit Score Rating
Credit score ratings do exist and they serve as measurements to your credit health. Similar to IQ tests, these ratings will determine whether you qualify or do not qualify to apply for a mortgage loan or a line of credit.
The following are the different credit score ratings you have to familiarize yourself with:
a. Excellent (780 up) – Individuals with this rate tend to enjoy the lowest and best interest rate that the market can offer. They are also likely to get approved for a mortgage loan.
b. Very Good (779-720) – Almost perfect and similar to an excellent score rating, they are also offered the lowest and the best interest rates in the market.
c. Good (719-680) – This score stands for good credit and will most likely not have any problems in getting approved for a mortgage.
d. Average (679-620) – This is considered a good credit rating range; however, they will receive a higher interest rate compared to those with a higher credit score.
e. Poor (619-580) – Individuals in this range are already labelled “high risk”. This will make it hard for them to get a mortgage loan at an affordable rate.
f. Very Poor (570-500) – Individuals in this range rarely get approval for any type of loan or credit although their credit score can still be repaired.
Having bad credit doesn’t mean it will stay forever. It is something that you need to work on. Always remember that the overall health of your credit is in your hands.
What you do with your credit is your responsibility; hence, our credit report will mirror your ability to manage your funds well.
Make a habit to check your credit score and always make room for improvement.
Budget your funds responsibly, refrain from being an impulsive buyer, and most importantly, use your money wisely to repair your credit fast.
We are you specialists in mortgages and in credit score repair for 9 years running. Our office is located in Canada and is founded by Faizal Garasia, an expert in credit and mortgage matters.
Feel free to phone +1 647-373-9651 or send email to [email protected] to learn more.