The first question comes in some people’s mind that why your credit matters? In America, if someone wants to live with bad credit score, it is possible, but will be tough. Your bad credit score will give you a lot of difficulties in large part of your purchases. If you want to buy insurance, you will have to pay higher interest if you are a driver. If a new utility you want to purchase, the company will check your credit scored and then will decide about putting a security deposit. It is well-known to all that banks will check your credit score before clearing any loans or credit card on your name.
If you are having bad credit scored, you should take care of it immediately, so that you can live a life without any stresses. Let’s discuss some tips for fixing bad credit.
Latest Credit Report
Go through the credit report carefully and find out what went wrong, the areas where you are getting marked negatively. You are entitled to get credit reports three times a year for free. You can mark the areas where the credit card companies listing of credits are different so that you can dispute any wrong entries.
Credit Report Errors
Take your time and review your credit reports, don’t hurry up. View the information you will need to repay:
- Information is incorrect.
- Past due accounts which are sent for collections, charged off or late.
- Accounts that are over the maximum limit.
Dispute
Any information incorrect on your credit report is liable to be disputed.
Past Due Accounts:
Your credit score largely depends on your payment history, i.e. 35% of your score. Try to turn all your past due to accounts into “current” or if not to at least “paid”.
High Account Balances Below Limit
The high your balances are, the more it is going to hurt your credit score. First, try to bring down the card limits under the maximum limit, and then make a way to clear the off completely.
