Credit scores play an important role in nearly everyone’s life. A good Credit score decides whether you get a loan or not. Everyone should make time to check and manage their credit score regularly, as it can affect your ability to borrow money or access products such as credit cards, or loans. If you aren’t getting approved for credit cards or loans, or aren’t getting favorable rates for financing, you might need to make some improvements to your credit score.
Here are 10 steps that can help you boost your credit score quickly:
1. Check your credit report for accuracy:
The first step to improving your credit score is checking your credit reports. Credit scores are based on the data in your credit reports, it’s incredibly important to make sure all of that information is accurate. If you have a mistake on your credit report, your credit score will reflect that mistake. As you look through the report, be sure to keep a lookout for references to unpaid bills or late payments. If you find any inaccurate information, file a dispute. The report should give you with instructions on how to do that. If you find you are not up for doing the task yourself, enlist a credit repair company.
2. Try to get your credit card limit increased:
You can try to get an increase on your credit limit in order to get your balances down. For example, if you have reached the $1k limit on your card, try to get the limit increased to $2k. The amount of credit you are using will get cut in half. If you are able to do this, be sure not to use any of it otherwise it will defeat your purpose.
3. Get a new credit card:
Get a new card but do not use it for any purchases. If you do not put any new purchases on your current credit cards as well as the new one, the overall amount of credit you are using will go down and your score may increase. The key here is to not apply for more than two cards, any more and it may look like you are looking to go on a shopping spree.
4. Try to negotiate any remaining balances:
You can help out your score by trying to settle some of the debt but make sure you get them to send you something in writing. If you find yourself in need of some extra cash, there are lots of ways to get some. For example: you may try to opt hard money loans as it’s easy, fast and quick funding loans provide full-flexibility to the borrowers.
5. Pay off your due credit accounts:
Make sure to check and pay off you all due credit accounts as soon as possible. Your payment history makes up 40% of your credit score. So start making payments now on any due accounts and you will see a quick boost to your credit score after it has been noted on your credit report.
6. Get connected with authorized user:
Connecting with an authorized user is a great option for giving your credit score a boost. The key is to make sure that the cardholder is making his/her payments on time each month and will continue to do so. When you get connected, the account will now be on your credit report. Just make sure it is your name on the card. Your credit report will now show the main cardholder’s on-time payments etc.
7. Pay your bills on time:
Paying bills on time is one of the biggest ingredients in building a good credit score. If you’re bad about paying your bills or paying them on time, it damages your credit and hurts your credit score. SO make sure you pay bills on time every month.
8. Use different credit types:
You can use different kinds of credit in order to increase your score quickly. For example, taking out a small personal loan or purchasing new furniture on installments may do the trick. This, of course, should only be considered if you are sure you can make the payments and on time.
9. Leave old debt on your credit report especially those with balance:
Leaving an account open provides you with a trade-line that can benefit your credit score as long as you are making timely monthly payments. If you are going to close your credit card accounts that have become delinquent, then please wait. Before closing any of your credit accounts make sure it would not negatively affect your credit score because closing a credit card with a balance can hurt your credit score. It’s very rare that closing a credit card will improve your credit score.
10. Ask your creditors to delete late payments:
If you are in a good place with your creditors, try to see if they can delete any late payments with the credit bureaus. This could help to increase your credit score.
The Bottom Line:
Credit scores are decision-making tools that lenders use to determine whether or not you qualify for a loan and how good the terms of the loan will be. However, lenders not only look at your credit score, they also consider so many other things such as the total amount of debt you have, the types of credit in your report, and any derogatory marks you may have. Other than your credit report and credit scores, lenders may also consider your total expenses against your monthly income (known as your debt-to-income ratio), depending on the type of loan you’re seeking.
Every time you set a major financial goal, like becoming a homeowner or getting a new car, your credit score is likely to be a major part of that financing picture. Improving a poor credit score takes time, but it’ll be completely worth it. If you have bad credit, following these steps will not only save you money, but also teach you the valuable skills necessary to maintain a good credit score in your future. You are advised to be responsible and stay educated about your accounts and scores in order to handle your own finances successfully.
Financial Institutions like Banks use credit score as a primary factor in the loan decision. They are often very stringent in demanding things like personal credit score and history, personal information including work experience and education, cash flow statements, balance sheets, financial projections, and much more. This abundance of paperwork, information, and requirements immediately turn off many otherwise qualified investors. The entire process of bank loan is very lengthy and complicated. For bank loans, minimum credit scores are crucial and very rarely can even well-documented explanations reverse a “denied” decision.
If you have bad credit and need a loan, hard money can be an extremely useful financing option for you. It is significantly easier to secure a hard money loan than a traditional bank loan. Private hard money lenders set their own criteria for accepting credit and be more receptive to common sense credit review. They look more at the situation and the cause of the credit flaws and rely on the collateral and higher points and rate to mitigate risk.
For additional help and advice on ways to get financing with bad credit, please feel free to contact Magna Capital Group, Inc. today at (310) 734 4044 or Email at info@magnaloans.com.
