It is only the rainbow that looks good with its multi-colors, but when it comes to credit scores, blotches on your credit report are not an attractive sight to behold. It is never too late to become credit worthy again. The change does not happen overnight though. A wise move towards the right direction is by asking the credit bureaus for your report. You will be surprise to see that these reports would contain slight differences. The reason for this is because creditors usually furnish a copy of your credit reports only to the one that they subscribe too. They can be any of the following credit bureaus: Experian, Equifax and TransUnion.
Do away as well with the mindset that you will get a better score if you earn more. Having a high income, according to the experts, does not have any bearing on one’s credit card score. The benefit of a high income though is you can be approved of a loan faster than those who Primary Tradelines don’t earn much.
First, get a copy of your complete credit report. Three companies provide these reports, and yes they are free. You may want to pay the small fee to get the most up to date and complete report though. So now you have your report. Sit down with a cup of coffee and really read it. You are looking for incorrect information that is still there – example: you paid off a car loan but it is still showing that you owe on it. Any discrepancies can be more easily removed by you providing supporting documentation to the charge(s) in question. You will need to do this in writing.
You may photocopy your primary high limit primary tradelines. Keep on rechecking it until you find errors. If there are disagreements with your past lenders, you should talk to them and settle this problem before applying for the best unsecured personal loan.
Track where the money goes. You will be surprised to find that the money goes not only to rent or mortgage but to other smaller items as well. So get all your bank and credit card statements and go to the link for the budget spreadsheet down below this article where you can track your expenses and put in the amount of money coming in and going out. This way you will know where you are.
Remember, the first thing to do is to check your credit report for credit limits. If your high limit is not reporting, the scoring model will use your balance as your credit limit. This means you’re using 100% of your availability. Call your creditor and make sure they correct it. Distribution of debt is an easy way to make sure you maintain a strong score. Try to have a good spread of debt with lower balance to limit ratio. For example, its better to have $2,000 on five cards than it is to have $10,000 on one card with four others paid off.
You last choice to repair a bad credit score would be to forget credit cards entirely and open a checking account and use debit cards, that act some what like credit cards as so much as convenience, in which you’ll use to make purchases. Debit cards are used in place of checks. Instead of writing a check to create a purchase, or pay a bill, you can merely use the debit card instead. Some debit cards operate in a way that is considered credit. However, you’ll only be able to pay what’s obtainable through your checking account. Make sure you limit your use of an overdraft as this looks just like bad credit when it’s used often.