We’ve all made foolish financial mistakes in the past that have come back to haunt us. As an adult, living with poor credit can dramatically affect your ability to achieve your goals. Buying a home, leasing a car, or qualifying for a job can all be difficult when you live with a poor credit score. If you have a FICO score under 640, you have likely already hit some of these types of roadblocks. Taking charge of your financial future should be a priority as you move towards your future.
Living with a low credit score may leave you feeling like you are in an impossible situation. The good news is if you are proactive there are a few things that you can do to improve your rating like investigating the best tradeline companies. Let’s look at a few ways that you can take charge of your credit score and move confidently into a more secure financial future.
Dispute Credit Errors
Your first move towards improving your credit score is to obtain a copy of your report from a credit bureau. Once you take a look at your report, you will have a better idea of where you can start making improvements. Nearly 35% of entries on your credit report have the potential of being incorrect. A combination of inaccurate data entry, false entries, and identity theft are accountable for most errors found on credit reports. You have the right to have your credit history corrected if you spot any errors. It is up to you to contact the credit bureau and request that they investigate any possible errors. Once any mistakes are corrected, you will see an instant boost in your score.
Add an Authorized Tradelines
Each entry on your credit report is called a tradeline. Your credit card balances, past due payments, and loan deferments are all individual tradelines. The status of your tradelines is the factor that determines your score. To help improve your overall score, you can use an authorized tradeline. To use an authorized tradeline, you will have to pay a vendor fee to a user that has a tradeline that is in good standing. In essence, you are renting someone else’s good rating and having it placed on your credit report. You will have no real control over the balance of the tradeline; this method is to facilitate a boost to your score only.
Pay Past-Due Balances
Over 35% of your credit report is compiled of your payment history. If you have a bad record of making late payments on your bills, your score will remain low. Items that have been sent to collections and not paid will stay on your credit report until they are cleared up or settled. The fastest way to improve your credit score is to finally pay off any outstanding debts. Work with your individual creditors to arrange fair or discounted payments.
Avoid New Credit
It’s best to avoid any new credit applications when you are trying to bring up your score. When you apply for new credit, your potential lender will likely take a look at your credit report which will be recorded and can affect your score. Opening too many new accounts can represent a higher degree of risk to new lenders and bring up your overall score.
It’s time to take charge of your financial future. With dedication and the ability to make tough sacrifices, you can work towards financial security. Follow these tips to help you take control and bring up your credit score.