The Problems With Having A Low Credit Score (And How To Fix It!)
As we go through life, there are certain things we have to learn about. These things can be very important, so, it’s vital you understand them properly. One of these things is your credit score. If you’re fairly young, you might have never heard of this before. But, anyone with a credit card or that’s applied for a loan will know what it is.
Your credit score will determine whether or not you’re ‘credit-worthy’ and how much money you can borrow. This is why some people have lots of credit on a credit card, while others have very little. The better your score, the more you can borrow.
Today, I want to start by talking about the problems with having a low credit score. Then, I’ll give you some advice on how to fix it, and give your score a boost.
So, what’s so bad about having a poor score? Well, the main issue is that it affects your ability to do financial things. If your score is very low, then you may be unable to get a credit card. Companies can deny your application because they don’t trust that you can handle their credit. Similarly, you can be prevented from getting important loans. If you want to buy a house, then you need a good credit score to get a mortgage.
You can see that your credit score is a very important part of your life. It needs to be looked after at all times. Below are some ways you can give your score a boost and fix it for good:
Hire Professional Help
If things are really bad, then it might be worth hiring some professional help. For people with extremely low scores, my tips can only get you so far. If you want to improve things and keep your score steady, you need to find a credit repair company. There are places like http://aaacreditguide.com/credit-repair-companies/ that list the best companies around for this task. Your job is to choose one and get them to sort out the mess you’re in.
Stop Missing Payments
For people that have minor credit problems, these next few tips will help you get into a good shape. Firstly, you have to stop missing payments. Failure to make payment dates is probably what’s causing your score to dip a little low. If you haven’t already, set up direct debits to ensure things are paid on time, automatically. Also, it might be worth canceling a few subscriptions if you can’t keep up with the monthly payments. Saving a handful of cash by canceling Netflix can help you pay the important things on time.
Clear Your Debts
Along with not missing payments, you have to ensure you clear any debts. No matter what, you should make debt clearing a priority. If you owe money to your credit card company, make sure you pay it as soon as possible. The same applies to any other debt you have. When you’re in debt, your credit score can be very bad. There are articles like this http://www.lifehack.org/articles/money/how-pay-off-debt-fast-using-the-stack-method.html that help you pay off debt fast. Use all the help you can get to rid yourself of nasty debt.
Hopefully, you now realize how important credit scores are. And, you’ve got some tips on how to improve it!
*This post is contributed to Spicy Scribbler Blog