Summary
Are you struggling to pay a loan, have a bad credit score, and have bad payment history? Fixing your credit has never been this easy! Here are some ways to repair your Equifax, Transunion, or other credit file but first:
What is credit score?
A credit score is a number that shows your financial worthiness as well as determines your purchasing ability and convincing powers for borrowing capacity to lenders. It is basically your integrity represented by numbers from credit bureaus.
Credit Score Ranges:
- 780-850 : Excellent and does qualify for best interest
- 740-779 : Very good and usually qualifies for best interest
- 720-739 : Above average and may face slightly higher interest
- 680-719 : Average score and may qualify for most loans at higher interestrates
- 620-679 : Below average and may qualify for most loans at significantly higher interest
- 580-619 : Poor credit score including some credit issues and will probably not
- 520-579 : A very poor score that has several credit issues. Unlikely to qualify for any
519 and below are facing extreme credit issues and need to seek a credit To connect with one, visit us at creditrepairnow.ca
What is a credit report?
A credit report is a compiled record of credit history that contains how you manage your credit obligations and the accurate responsibility of debt repayments.
Pay your bills on time
Prime lenders look at borrowers on their ability to make payments for their debt on time. Unsuccessful to do so, we are only increasing the risk that prime lenders see on us as borrowers.
Monitor your payment history
Check your credit report regularly to maintain financial health and status. In this way, you can manage and make a habit of controlling your budget as well as being aware of your daily expenses.
Use credit ratios wisely
Credit usage beyond and over your credit limit can lower your credit score. Try to use less than 30% to avoid negative impacts. To calculate the percentage, divide the amount you’re borrowing by the credit limit you currently have. In that way, when lenders see that you have below 30% of credit usage, it will increase the chance of lenders lending you a loan and sees that your not too reliant on debt.
Aim for a lasting credit history
Some credit cards offer promotions at the start and that may tempt you to transfer your old funds to this new lower interest rate credit card. Avoid this type of circumstance because transferring old credit card balances to new accounts is treated as new credit card opening and this scenario may affect your credit score negatively.
Own diverse types of credit
The more variety you have, such as car loans, credit cards, mortgage loans, student loans, and even a line of credit, the better it will look to lenders. It provides a better snapshot of your finances and deeper insights for lenders to decide whether they should grant you a loan.
Avoid applying for many credit cards at the same time
When lenders request credit bureaus for your credit reports, this is called an inquiry. Too many inquiries or an increase in your credit checks make it look like you’re short on money. These open you for a tempting opportunity to spend more above your spending means.
Submit a dispute letter for errors
Regularly monitor your bills and payments in order to spot an error and inaccurate balances. Submitting a dispute letter when you find an error helps to repair and fix these incorrect values and thus increasing your credit score.
Final Thoughts?
Taking the time to fix and repair your bad credit score is worthwhile and outweighs the
mistakes done on the past. Checking your finances on a daily basis is just as important as keeping your health in good shape. It affects both ways in our lives as well as our loved ones this present and coming future. Do the checking and we’ll do the fixing. To know more and connect with us, visit creditrepairnow.ca
