Why You Need To Raise Your Credit Score
Poor credit impacts your ability to move forward with your life. It’s important to take steps to restore your credit so that you can have better financial opportunities. It used to be that bad credit would just stop you from obtaining financing, but now it can also stop you from getting the job of your dreams, increase your insurance cost, and force you to provide security deposits for your utilities. If you want to put an end to the stress that bad credit creates, then you need to work on raising your credit score.
Follow these tips to raise your credit score:
- There are secured credit cards available if your credit rating is too low to open up a regular credit card account. These cards tend to give you instant approval because they are secured by a security deposit. The bank makes your credit limit equal your security deposit and thus protect their interest. If you don’t pay, they simply keep the security deposit and they are not out any money. But if you use these cards correctly, they are a GREAT way to rebuild your credit.
- Prior to agreeing to a debt settlement agreement, find out how that process is going to impact your credit score. There are ways that are less damaging than others, that is why it is important to research about it before starting an agreement with creditors.
- Lower interest rates mean lower payments, which allows you to pay off debt faster. Asking for a better deal from your creditors can help you get out of debt and back to achieving a better credit score.
- Getting a mortgage can be quite tough when your credit rating is not good. If this is the case, try to get an FHA loan, which are loans backed by federal government. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
- Look into other ways to add new TYPES of tradelines to your credit report. Its not good to have a credit report with only credit cards on it. Also excessive credit card use will increase your bankruptcy risk score.
- Even if you don’t have a mortgage you can still add a real estate backed tradeline by adding your rent to your credit report. This can be a very powerful line of credit to add to your credit report and can help raise your credit score.
Turn a negative into a positive. Repairing your credit is not impossible, although it will take some discipline and patience. Many credit repair strategies don’t cost a dime and can have immediate effects on your credit. Apply these pieces of advice to help you mend your credit problems for good.