Credit Score 401
March 15, 2021

How to Improve Your Credit Score

 

Like it or not, when you are looking to borrow money, you are defined by your credit score and what appears on your credit report. This tells the story of you as far as creditors are concerned. However, you are not doomed to a lifetime of poor credit when you take steps to monitor and build your credit.

Why Is Monitoring Your Credit Score Important?

When you anticipate using your credit at any time, it is crucial to know what you are working with at all times. We have heard far too many stories of people who were turned down for things like loans and mortgages, learning only when they applied for a loan that they had bad things in their credit history. When you are shocked by what you see, it could be too late to do something about it. However, a regular credit score check will let you know that you are on a steady course and let you know what to correct if necessary.

You have the legal right to challenge any entry on your credit history by contacting the three major credit bureaus. They will need to investigate and provide you with a response to your challenge as required by federal law. However, you first must notice that something is wrong through a credit score check.

In addition, regularly checking your credit may alert you that something is amiss. In this time of rampant identity theft, a credit check is often the first way that people realize that criminals have stolen their Social Security number and are charging things in their name. This will at least allow you to start trying to repair the mess and cancel the credit that has been taken out using your information.

We offer access to this dashboard to our customers, and it provides you with information that is necessary to protect your credit. You can also learn helpful information on how to manage and improve your credit score.

Can You Get Free Credit Reports?

The good news is that you can easily check your credit, and it will not cost you any money to do so. You do not need to go with an expensive credit monitoring service when federal law gives you protections as a borrower.

According to the law, you can get a free credit report from each of the three major bureaus once each year. If you space these out to receive your reports at different times, you can actually check your credit every four months. It is vital to take advantage of this free resource available to you, and it does not take much time out of your day.

All you need to do is go online to ask for your free credit report. By filling out your information and providing some identifying personal information, you can instantly download credit reports without having to wait. We recommend that you do this at least yearly, especially since it is free.

What’s Considered a Good Credit Score?

In the pyramid of credit scores, there is good credit, and there is exceptional credit. When it comes to a FICO score, anything over 800 is considered to be excellent credit. You will have almost no problem getting a loan with that score if you meet the required income level. A credit score this high means that you usually have either no derogatory events or just minor ones. Anything in the 700s is still considered good and will qualify you for loans. If you have a score below 700, creditors may start shying away.

How Can You Improve Your Credit Score?

There are a number of ways to improve your credit score. Perhaps you can start with something small like a secured credit card. Beyond that, getting your debt under control is the next best way. Credit scores often suffer under the weight of too much utilization of your credit, so cutting the amount that you use would help lift your score.

In that regard, being prudent about using the credit that you already have can help. People should resist the urge to use credit just because they have it. In addition, challenging and having incorrect entries removed from your credit will also improve your score.

Can You Get a Loan With Poor/Bad Credit?

It is possible to get some kinds of loans with bad credit, but you will have to pay much more in interest. This is understandable because the lender is taking a risk in lending you money due to the potential for default.

The best thing for borrowers with bad credit is to take out a small loan and begin to establish a record of making on-time payments. Creditors may weigh recent credit history more. Even if you have a bad credit history because of things that happened in the past, many lenders will look beyond just the number of your score. They like to see that you are beginning to improve your own credit performance, and that could persuade a credit officer to take a chance.

Thus, while it is difficult to get a loan with bad credit, it is not impossible and may even be beneficial. Successful repayment is the number one answer to the question of how to improve your credit score.

When it comes to your credit, about the worst thing that you can do is nothing. Being proactive in monitoring and building your credit can greatly improve your financial situation in the long run and improve your chances of getting loans.