Today we are gonna discuss one of the most important aspect of our financial status..the credit score. On an average, 90% of the US citizen are suffering from credit score related problem. You can not avoid the situation when you would apply for mortgage or car loan or new credit card. So, let’s have a quick look on how you should act to protect, rebuild or repair your credit score.
Check out the below given points which you might have not used yet :
1) Check your credit report to locate errors – If you have taken any wrong financial decision previously, you will definitely get penalized for that in future. But it will be not suitable that you will pay the price for that mistake which you didn’t commit. It is statistically proven that 70% of the total credit report issued have critical error within it. So, there is no reason that yours will be exempted from the errors, you may have the difficult one.So, it is advised to follow your report in detail to avoid any kind of error or wrong entries. You can get your free copy of credit reports each year 3 times.
2) Catch up your missed installments – If you’re having trouble with your debt payments, you can work out a plan to catch up with your payments. First you might need to ask your creditors, if he doesn’t co-operate then consult a non-profit credit counseling agency to negotiate on your behalf.
3) Make sure to be continues on every debt payments – Your monthly debt payment history plays a significant role in maintaining your credit history. When you apply for credit, you might be able to receive letters of recommendation from the credit card companies. Because of this situation, you might interested to consider that your payments may automatically deducted from the checking account. Make sure you do not draw more than your limit from the account. If somehow a payment is missed, then promptly ask the creditor to remove that late payment from your account, if he is willing to do that.
4) Go for a secured card if possible – It is not possible to build a good credit history without an existing credit card account. You can initially begin to check whether you can make arrangements from your bank to allow you a secured credit card. These credit account will need you to deposit a certain amount equal to the credit limit you are allowed. It will become a special kind of savings account which will protect you from not making a payment. The credit card company can collect the payment if there are any missed payments. This will minimize the bank’s risk and it becomes easy for you both.
5) Try for an unsecured card after making timely payments regularly – You can apply for a department store cards. These cards are quite easy to qualify for. You can pay your dues in full and try to make them before time each month. After doing this for 6-12 months and then apply for a regular credit card after building a goodwill.
To be continued…