It's 2020, why not shake things up a bit and make a difference? Maybe your resolution this year is to repair your credit and hopefully get approved for loans, credit cards, and other types of credit. At Miramar FL Credit Repair, we understand that your credit is more than just mere numbers, but a report that tells lenders how much of a competent financial planner you are.
Here are some insightful tips that will help you make your credit scores more stellar and build your scores up, especially in a city with many lenders such as Hollywood, Florida.
1. Pay Your Bills on Time
While many factors play a role in building your credit score, your bills take up a considerable large portion of it. Lenders need the assurance that you will pay their money and in good time. Paying up your bills on time shows that you are a reliable and trustworthy client who's not scrambling for cash.
2. Pay Down Your Debt
Getting rid of debt increases your credit to debt ratio. Lenders like checking this to see whether you are asking for more than you can pay back. The rule of thumb is to generally keep your overall card credit card utilization less than 30% and paying off the higher interest debts first. Move to pay down these debts and successfully repair your credit score.
3. Check Your Credit Report
You have to ensure that you frequently check your report to check for any errors and also prevent identity theft. Get a free credit report from any of the three credit reporting bureaus and check for any potential mistake that would bring down your credit score. Check thoroughly through it, and in case of any inaccuracies, ask for corrections to repair your credit.
4. Pay for a Deletion
When you have an unpaid debt that is lurking for too long and overdue, it has an extremely negative impact on your credit score. What's more unfortunate is that the negative information stays on your credit score for about seven years. If you have any old collection account, pay up and ask for a deletion hence minimize the toll it has on your credit score.
5. Don't Open Up Too Many Credit Cards at the Same Time
Avoid opening too many credit cards, especially within a short period. Each time you apply for a credit card, a hard inquiry is generated, which stays on your score for two years. Too many hard inquiries might be potential red flags to lenders, thus the need to spread out your credit card application.
Building your credit score is not a one-time thing and needs the old tenet of patience. Don't aim for instant gratification but perceive it as a journey. Feel free to talk to us about building your credit score report, and we will be more than willing to assist.