If you are reading this article, you are probably having problems with your credit score. Having a damaged credit score can keep you out of several things. You may not be able to buy your dream apartment or a brand new car you have always wanted. Everybody goes through a tough financial moment at some point in life, and damaging your credit score could be one of them. However, all is not lost. If you are wondering how to fix your bad credit score, here are essential tips to help you.
- Pay Up Some Debts
If you want to fix your damaged credit score, one of the crucial things you need to do is pay off some debts. Paying the outstanding debts can reduce your utilization ratio. Start by paying the debts with higher interests first before paying the smaller ones. If your income is not enough to pay off the debts, consider other alternatives like selling some of your assets that you no longer use. You can also sell diamonds to cover your debts. The fewer debts you have, the better your credit score becomes.
- Pay Your Bills
The manner you pay for things makes up 35% of the credit score. Therefore, the other step to fixing your poor score is paying your monthly bills on time. It might be challenging for you at the moment but it will be helpful in the long run. If you are incapable of paying the bills on time, contact the office in charge and set up a payment plan.
- Check the Credit Score
Before anything else, check your credit report to see how you have been performing in the past years. The report is used to calculate your score, and you can do this on the available scoring sites. Inquire about your score to know where you stand and how much you need to do to fix it.
- Get a Secure Loan
You may also get a secure loan or a credit card builder to improve your score. You can find these in your community bank. However, you must provide proof of income to signify your ability to pay the loan. You will not be given the money though. The lender will hold it until you repay the loan then release it to your credit card.
- Consider a Secured Card
When building a credit card from the beginning, it is advisable to start with a standard card or a secure card. This is also available for people whose credit is damaged beyond repair. You, however, may be required to pay a deposit upfront.
- Consider Being an Authorized User
This part comes in when you have someone with the same card issuer. You can request the person to sign you as an authorized user even without making any contributions to their card. Your card will benefit just by being an authorized user. The person can add you without having to give you their card number.
If you are planning to fix your bad credit, these are ways you can use them. All you need is to pay off high-interest debts and your bills on time. Know how you spend and consider securing a loan to improve your score.