Tag: improve credit score

7 Important Tips to Increase Credit Score

increase credit score

Have you already done your best to improve your credit score but still nothing happened? If this is the case, don’t lost hope. There are still some steps that you could try. Hence, there is still a big difference between a credit score of 550 and a 780. The following tips will surely help you increase credit score:

Ø Request a copy of credit report – The Fair Credit Reporting Act require the three agencies Experian, Equifax and TransUnion to give a free credit report each year. For this reason, it is important to check credit report because the reports of the three egencies may differ. More so, it is one step for the consumer to keep track of all their financial activities.

Ø Make a move to improve credit score – Loan company will always refer their loan approval on your credit score. So, if you really have plans of taking loans in the near future, make sure to improve your credit scores first. Do it by paying bills online, keeping debt below 35 percent of the available credit, paying off debt and disputing errors on credit report.

Ø Read and understand the guidelines and policies of the credit card contract – Oftentimes, people don’t bother to read the terms and conditions of the credit contract. They are just surprise of the total bills that they need to pay because of penalties, interest rates and other fees. You should be aware with all the terms and condition so you will know how to handle your payment method.

Ø Read and examine monthly statements carefully – Even if reading monthly statement is so easy, it is still advisable to examine it carefully. There might be some fees reflected in the report that are not present in the previous bills. If there is something that doesn’t make sense, do not hesitate to call your credit card company.

Ø Make sure to pay down or pay off credit card balance – As much as possible, avoid making new charges by not paying full the previous bills. This is a common mistake of many consumers. They are too focus on paying the minimum amount and just leave the balance unattended. In the end, when all the balance is added, it will sum up to one big amount. So better paid everything and do not leave any balance.

Ø Choose credit cards that match your spending habits – Your spending habits will tell you which credit card is best for you. Always consider the payment terms and the date of your salary to avoid penalties in the credit card company.

Ø Think twice before canceling any cards – Canceling your cards will throw up red flag and impact on your credit score. Since it will give negative impact, make sure to think twice before canceling it. You can always cancel your card but your credit score will suffer.

Credit scores will never be a problem if you just know how to deal with it. Try the above tips and you will surely enjoy your good credit score.

5 Things to Avoid Before You File Bankruptcy & Improve Credit Scores

 

Man holding printout from calculator.

Filing for bankruptcy is already a formidable task, so you’ll want to do everything you can to avoid shooting yourself in the foot and making the process that much harder and it doesn’t improve credit scores. Unfortunately, some actions that seem perfectly reasonable, and even prudent, can actually land you in even more trouble. In worst-case scenarios, the court can dismiss your case, leaving you responsible for paying your debts.

 

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5 Mistakes You Make When Managing Your Debt

managing your debt

 

Not all debt is created equal. With that being said, there is no one-size-fits-all approach to managing your debt and avoiding excessive interest, fees and other penalties that could result if not handled properly.

Here are five mistakes consumers commonly make with their debt (and ways to avoid them).

1. Depleting Your Emergency Fund

 

2. Having No Plan Of Action

 

3. Getting Caught in the Minimum-Payment Plan

 

4. Robbing Peter to Pay Pal

 

5. Ignoring Statements and Credit Reports

 

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5 Ways to Quickly Boost Your Credit Score

 

Despite what all the advertisements say, there aren’t many ways for you to boost your credit score quickly and legitimately. Many of the advertised tactics revolve around disputing old, negative information in the hopes that the original creditor won’t respond and the mark will be removed. It’s an entirely legitimate technique but it’s a little dishonest. Some companies also advocate writing a letter to the original reporter of negative information and asking them to remove the mark for one reason or another. While less dishonest, it goes against the spirit of how the score was intended and while I have no problem with it, I think there are several honest moves you can make to give your score a boost without resorting to these tactics.

 

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Restart Old Debt in Exchange for New Credit Card?

People struggling with bad credit know how difficult it is to get approved for a new card. But what if you were given the chance to open a new credit card with the agreement that you’d pay off an old debt? Would you accept the offer?

In December 2011, the Wall Street Journal reported a credit card arrangement just like this. Consumers with bad scores were able to get a new card, but it required them to pay several hundred dollars per month toward an old debt. Is it worth it?

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