It can be very difficult to secure a loan or lease a vehicle if poor financial decisions have resulted in a poor credit score. Simple things like forgetting to pay a bill or ignoring a fee can lower a credit score. If you have poor credit and you want to change it, read this article for information that will help you do just that.
If you can’t get a normal card due to low credit score, look into a secured card. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. If you use a credit card well, your credit rating will begin rising.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. All information remains on your credit report for a period of seven years or more. If the information is an error, the credit report can be corrected.
Credit improvement requires that you begin paying your bills. More specifically, pay them on time and in full. Your FICO score will begin to increase immediately after you pay the bills that are past due.
Before you hire a credit counselor, make sure that you have done your research. Some credit counselors offer real help while others have more dubious things in mind. Many others are nothing more than scams. You should always find out if a credit counselor is the real thing.
Try an installment account to get a better credit score and make some money. Make sure you can afford to make the payments and try to maintain a minimum monthly balance. If you can manage one of these accounts, your credit score should improve quickly.
Call each of your charge card companies and ask them to lower the limit on them. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
Anyone who hopes to get a loan or may one day be involved with their children’s college loans, should pay attention to their credit score. The tips in this article can help you, even if you have a low score and massive debt.