19 June 2013 Repairing Credit And Improving FICO Credit Scores Payday installment loans can help improve FICO credit scores. Although application for these loans does not need a very high credit score, paying off payday installment loans on time can help improve your credit standing. This is because payments for loans are generally reported to credit bureaus. Repairing bad credit is just like losing weight. It takes time and there is no quick way to fix a credit score. However, getting payday installment loans to improve your credit score may help. Oftentimes, quick-fix efforts to repair credit scores can backfire, so beware of any advice that claims to improve your credit fast. The best thing to do for rebuilding credit is to manage it responsibly over time. You need to repair your credit history before you will see your credit score improve. Here are some tips that can help you do that. They are divided into categories based on the data used to calculate your credit score. 1. Check Your Credit Report Your credit score repair begins with your credit report. If you haven’t seen yours, you can request a free copy of your credit report and check it for errors. Your credit report contains the data used to calculate your score and it may contain errors. Check that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. If you find errors on any of your credit reports, you can file a dispute with the credit bureau and the reporting agency. 2. Setup Payment Reminders Generally, making timely credit payments is one of the biggest contributing factors to improve your credit score. Some banks offer payment reminders through their online banking websites and send you an email or text message to remind you when a payment is due. You could also consider enrolling in automatic payments through your credit card or have payments automatically debited from your bank account. 3. Reduce the Amount of Debt You Owe Though this is easier said than done, reducing the amount that you owe is going to be a satisfying achievement and improve your credit score. To do this, you need to stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Then have a payment plan that puts most of your available budget for debt payments towards the highest interest loans first, while maintaining minimum payments on your other accounts. 4. Payment History Tips Your payment history contributes to about 35% of your credit score. This category has the greatest effect on improving your score, but past problems like missed or late payments are not easily fixed. Here are ways to improve your payment history: · Pay your bills on time. Delinquent payments, even if only a few days late can have a major negative impact on your FICO score. The longer you pay your bills on time, the more your FICO score should Improve. · Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years. · If you are having trouble making ends meet, contact your lenders or see a legitimate credit counselor. This won’t rebuild your credit score immediately, but you can begin to manage your credit and pay on time which will help your credit score increase over time. 5. Amounts Owed Tips This category contributes 30% of your credit score’s calculation and can be easier to clean up than the payment history, but you need financial discipline. To do this, start with the following: · Keep balances low on credit cards and other “revolving credit”. · Pay off debt rather than moving it around. · Don’t close unused credit cards as a short-term strategy to raise your score. · Don’t open a number of new credit cards that you don’t need, just to increase your available credit. Repairing your credit score is about fixing errors in your credit history and improving your financial health. Strive to maintain a consistent credit history. Raising your credit score after a poor mark on your report or building credit needs tons of patience and discipline.
Posted on: Wed, 19 Jun 2013 15:42:13 +0000
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