5 Ways to Ensure Bad Credit Scores Doesn’t Limit Your Borrowing Goals
While the average credit scores for Americans have been on the rise, there are still a lot of people with low credit scores. When your scores are suffering from previous credit transactions, restoring the scores to the former glory can be a long and tedious job.
By now, it’s likely that you are aware of the possibility of raising your credit scores through simple actions like prompt bill payments and keeping off anything that would hurt your recovering score. But when you have a borrowing goal in the near future, you need solutions that deliver results on time. In this article, you will learn about some steps that can make your borrowing aspirations a reality.
Check your credit report for errors and file a dispute
If you discover that your credit statement probably has some errors, outdated information or data that is unverifiable, a credit dispute can be a good move. If the quest is successful and the errors are promptly removed from your account, it’s likely that your credit scores will get a boost as soon as within the next 30 days.
Another perk of filing a genuine credit dispute is that the law requires that all accounts that are in dispute be noted on the credit report. As such, any account with pending disputes will be treated in a different manner when compared to normal accounts. This means that disputed accounts won’t have an impact on the credit score until your dispute is settled. If you need a quick fix, this can be a good way to restore the credit profile.
Have your rent information included in your report
Whether you intend to acquire your own home or not, you can definitely use this option. The rental payments data can be included in your credit profile. While this data is normally considered to be non-traditional, it can have a great positive impact on your credit profile. However, this is only possible if you’ve been making timely payments.
According to recent studies, having your rental data included in your profile can boost your scores with about 20 points in just a month. Nevertheless, this is not a task that you can accomplish on your own. Basically, it’s necessary that your landlord verifies your prompt payments.
Take advantage of piggybacking
With piggybacking, you will be riding on somebody else’s long credit history as well as their stellar credit scores. This option is quite popular with most couples where the partner with excellent credit history gives a green light to the one with low credit to become an authorized user on a certain account. Normally, it is applied to credit cards.
In addition, this can also be a great option for parents who want to help their college kids build their credit scores. To illustrate, if you have a partner or parent with an outstanding credit history, they can add you to the account. As a consequence, your scores can go up to 700 points in just one and a half months.
Change your bad debts into good debts
As far as the credit scoring system is concerned, the revolving debt which is basically dominated by credit card debt is one of the items that can significantly lower your scores. This implies that if a huge percentage of your debt comes from credit cards; your credit scores are likely to be low.
Whether or not you have the required funds to eliminate or lower the outstanding credit card balances, it’s possible to give your score a boost. All you need to do is switch the revolving debt into an installment loan from nation21loans.com. This form of debt is friendly to your scores since it’s perceived to bear a lower risk.
For instance, you can take a personal loan from peer-to-peer lenders and use the money to pay urgent the credit card dues. After making this change, you should notice a difference in your credit scores in about one to two months.
Consider a secured credit card
If your scores are terribly low, you can get a secured & safe credit card that will help you rebuild your scores. Generally, you will be required to deposit some money with your service provider before receiving the card. The amount you deposit reflects the credit limit you will be allocated.
Don’t get confused, this deposit can’t be used directly. Instead, it sits in your account as security just in case you are not able to repay the debt. Nevertheless, if you pay as agreed you will eventually get the full amount refunded.
While these cards come with an annual fee, the transactions are reported just like normal credit cards. In the end, you will have built your scores in several months.
By now, you have realized that restoring your credit profile doesn’t have to take many years and it doesn’t have to be injurious to your borrowing prospects. If you can diligently apply these tips, you will definitely be able to utilize better credit deals.