At some point or another in our lives, we will all need to purchase a new home, a car, or borrow money from a lender for one reason or another. However, a bad credit score can make it seem as though you are on a blacklist where banks and lenders refuse to even speak with you. It’s a tough spot to be in, and it happens to a lot more people than you might think.
There are a wide variety of things that can affect your score, and many Americans are still recovering from the damage of the 2011 stock market crash as well as their accumulated student and credit card debt. Life is unexpected, and expenses beyond our means can arise at any time. These sudden situations can feel hopeless when your credit score is low, leaving many screaming “I wish I knew how to fix my bad credit score fast!”
The good news is that there are ways to improve your score. Even if it is just one little step at a time, working towards a higher credit score is something you need to do for yourself. Follow these steps, and you’ll be on your way to the green light for a loan in no time.
The Pesky Credit Card
The first and most important thing you can do is change your habits. It’s easier said than done, but sit down and figure out your monthly budget without using a credit card then calculate in how much you can afford to pitch in towards lowering your debt. Resist the temptation to use that card at all costs, but leave it open.
While it may sound a little strange, you can also inquire about raising your credit limit. Utilizing between 10 to 30 percent of your allotted limit will help to raise your credit score. If you can stay within that limit each month, you’ll see an immediate improvement.
Don’t Be Afraid to Ask Questions
Did you know that the vast majority of credit reports contain errors that can have a drastic impact on a person’s score? Take a look at yours to see if there is any false information, and immediately file a dispute if there is one. It’s your right to do so, and it can really give your score the boost you are looking for.
There is also no harm in asking your lender or bank if they will work with you to help resolve this issue. In most cases, they are not looking to hurt your credit as much as they are looking to get paid. Use that to your advantage and start negotiating with them on a new agreement.
Changing the terms of your loan can help you get your score back on track, but always make sure to get the new terms in writing. Also, make sure you agree on something with payments that you will be able to keep up with. There’s no sense in negotiating a new deal just to end back up in the same spot.
Staying on Top
Utilizing free tools like Credit Karma will allow you to check your score whenever you need to without paying a dime. It’s a great way to view your progress for some motivation, and know when you are ready to get the kind of loan you need.
Fixing Your Credit Score Fast
Everyone experiences bad credit at one time or another, but don’t let that score define you. Take charge, and you can turn a 500 into a 680, or even a 700+, in no time flat. By making a plan and sticking to it you can open up a wide variety of new possibilities for better loans with reasonable interest rates.
