Fixing Your Credit Fast
Whether you have a good or bad credit, there are a variety of ways that you can use to maximize your credit score & fix your credit. Here are the best ways to go about fixing your credit fast!
Since your score will determine the amount of access you will have to loans and other funding options, having a good score is not enough. Your credit history will also affect your score. Thus, by following these tips that bad credit lifeline has identified, you can be able to maximize your score.
Limit hard inquiries on your credit
Usually, there are two kinds of inquiries that will show up on your credit report. While one will have a negative effect on your score, the other will have minimal to almost none.
- Hard inquiry: While this inquiry is subjective, this type of inquiry will affect your inquiry negatively. This means that when you take out things such as loans or credit cards, they directly impact your score.
- Soft inquiry: This inquiry does not have any effect on your credit score. Some of the types of a soft inquiry include using a credit monitoring service, checking your credit report or having your employer pull out your score.
To make it simpler, a hard inquiry relates to the times when you make an application for credit while a soft inquiry will relate to when you are just checking on your loan and not seeking one.
Thus, you should ensure that you keep your hard inquiries to no more than two in a 2-year period. Once you do it more than twice, it negatively affects your score as you start to lose points as it depicts you as someone who is desperate for money.
Have a variety of credit account types
There are usually four types of credit accounts. Depending on which one it is, it will determine what kind of impact it will have on your credit score. These types of credit accounts are:
- Real estate loans: This one relates to home and mortgage refinancing
- Installment loans: These are loans paid over time such as car loans and student loans.
- Credit cards: This relates to cards such as Visa and MasterCard.
- Retail cards: This relates to a line of credit given by a merchant.
Thus, you should diversify those that you have but not necessarily close them. This is because a credit account type such as that for installment loan will have a bigger impact on your credit score as compared to that of a retail card.
Use credit utilization ratios
If you want to kill your credit score completely, you should max out your credit card. While you might be mistaken to think that paying your card on time even though you have maxed it out is okay, this is wrong.
If you can, you should try and only use 25% of the funds in your credit card. If you already have, you should pay for it so that it reaches the 25% level. Once you do this, it will go a long way in increasing your bad credit lifeline.
At least open one major credit card
While it is not something that you should get right away, you should work towards it. Even though you might be having a bad credit, you should consider it. Usually, having a credit card implies to the credit companies that you are a person who can be trusted and thus it improves your credit score. All you need to do is work your way up to a level in which you can become eligible to acquire one and get it. It does not mean that you should use it but having one is what is more important if you want to skip the hurdles that credit institutions usually have in place.
Grow your credit history
While you may believe that closing your account which has a debt will make it go away, it actually stops it from building a history. This means that you score will be negatively impacted since you will be deemed a defaulter.
Therefore, you should keep your accounts open until you finish paying off the credit card debt. Since there are several factors such as your payment history, the credit type, new credit, credit length and the amount you owe which will be examined, they each will play a role in determining your credit score.
Also, you should ensure that you clean your credit history by eliminating any late payments or collections that may still be present. While there is the option of waiting for 7 years for the items to be removed, you can have the option of removing them yourself if you have completed them. Once you do this, your loan applications will not be affected by those items when you apply for a bad credit lifeline loan.
Pay Bills On Time
Your credit score is directly related to your payment. If you really want you credit score to soar up, you should ensure that you make your payments on time. This means that if you know that there is a long outstanding debit on one of your accounts, you should make every effort to pay it off. This is because your history will show that you cannot be trusted to repay money borrowed by other lenders if you make an application with them for a loan.
Whether you decide to make monthly payments or decide to be paying some extra money on top of that which is already required, you will have an edge on your credit score and it will go a long way in optimizing your credit score. Additionally, you will become more eligible for higher bad credit lifeline loans once you do this.
Fixing Your Credit Fast Conclusion
Thus, optimizing your credit score can have great benefit for you. Since there are those small mistakes or things that you might do either knowingly or unknowingly, you should be aware of what consequences they have in your credit report. In addition to the above ways of fixing your credit fast, we have these great credit hacks that will help fix your credit even quicker!!
If need be, you can visit the credit bureau to talk to one of the agents who can also advice you on which areas you can rectify to improve on your score. At times, they may also ask you to try practicing debt consolidation which also yields great benefits since all your debts are in one place and you can pay them off all at once by only using one card. While this may not seem logical, it will actually lead to more savings and increase your chances when you apply for a Bad Credit Lifeline Loan.
Fix Your Credit Fast