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Improving Your Credit Score Quickly

By on February 17, 2016 in Credit

Have you recently been denied a credit card or maybe even a car loan? If so, you may suffer from credit score blues. Your credit score is an important factor companies use to determine your credit worthiness. Creditors suck as banks, car dealerships and credit card companies look at your credit score to determine the probability that you will pay them back on time.

Creditors get this number from the 3 main credit reporting agencies Experian, Equifax & Trans Union. If you haven’t paid your bills on time, you will find yourself with a lower credit score. Having a low credit score will increase the chance you will receive less than the best interest rates on any new credit card or loan and if your credit score is bad enough you may even find yourself unable to get any rate from a creditor.

A good credit history has a dramatic impact on every part of your life. If you find yourself in a bad financial position resulting in a lower than desired credit score, you need to take step to improve your situation. Not only can a low score limit you loan or credit card options but it can make other purchases more expensive. Some of the things negatively affected by a poor credit score include all your insurance and utilities. This is because insurance and utility companies are taking a person’s credit history into account when trying to determine the likelihood that they will pay their monthly bill.

Steps to Improve Your Credit Score Quickly

So your credit score is bad and you know it’s time to correct you past mistakes, but how? Here are a few steps you can take to improve your credit score quickly.

  1. Check for Errors: You are able to receive a free credit report annually. Make sure there are no mistakes on any of the reports of each of the three major credit bureaus. While errors aren’t frequent they do happen. In fact a 2012 study from the Federal Trade Commission found that one in five Americans had an error on their credit reports.
  2. Begin to Pay Down Your Debt: You may not be able to pay down all your debt at once but the point is to begin to pay it down. You may want to call your creditors and see if you can work out a repayment plan. They may even offer to remove or reduce any late charges you have incurred.
  3. Begin to Pay Your Bills on Time: There is no better way to begin to restore your credit than to pay your bills on time. Paying your bills on time will begin to build a history of handling your finances responsibly and you will see your credit score increase as a result.

We all face tough time but it is important to realize that there are steps we can take to improve our circumstances. A great credit score makes life than much easier and while it may seem a long way away, taking small steps now can and will result to a better tomorrow.

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