If you have been struggling with debt for a long time, then it’s high time to take some steps to rebuild your score. You might think that a poor credit score may just keep you away from getting new lines of credit. But, bad credit may leave you in a worse financial condition as well. It may leave you homeless and it may also leave you jobless. Because, almost every company will check your credit score to get an idea about your financial condition. So, it is very important for you to take some steps on your own to repair your credit.
4 reasons why you should repair your bad credit
Don’t accept your bad credit score as just another financial condition. If you don’t think about fixing your credit report, you’re committing next biggest financial blunder. Below are some reasons why you should rebuild your bad credit.
1. To stop paying extra bucks on security deposits
Utility service provider will check your credit score before providing you the service. Incase you’ve low credit score they will charge you a deposit. So, once you improve your credit score, it will help you stay away from all those high security deposits.
2. To save more dollars on interest rates
Remember, lending industry has entirely become a credit-based . So, it is important for you to repair your credit to get loans with favorable terms and conditions. Low credit scores means high interest rates. And it will also influence the outstanding balances of your credit cards. If you fix your credit score before applying for a new credit, you’ll be able to get the best interest rates.
3. To lower your insurance premiums
You need to recheck your credit score, if you’re paying too much on your insurance premiums. A poor credit score highlights that you’re irregular on your monthly installments. Thus, implies you’ll be a risky borrower. This will surely increase your insurance premiums.
4. To stop paying cash for anything you want
If your credit score is below the benchmark, then it will be difficult for you to get credit cards. And without credit card you need to pay cash for everything you want to buy. Which is quite difficult for you.
Moreover, obtaining a higher credit limit, buying a new house with mortgage financing at an affordable rate are some other reasons for repairing bad credit. Therefore, if you’re still not serious about credit repair, consider the benefits that you may get in the lending industry and plunge into taking this step.
4 Ways to boost your credit and maintain throughout the year
It is better to repair your credit on your own and become creditworthy to give value to your hard earned money. Check out theses ways to give a decent boost to your credit score and maintain the same throughout the year.
1. Pay off your due bills
About 35 percent of credit score comes from your bill payment record. As per the experts, If you’re 90 days late, then your credit score will drop more than the person who is only 60 or 30 days late on his payments. So, the more you delay, the lower your score. So, try to pay off your due bills as soon as possible.
2. Review your credit report on regular basis
You’re supposed to get a free copy of your credit report from the three credit reporting agencies. Order a copy and review it carefully to mark the errors and the negative listings. Thus, you’ll come to know where you stand financially and how you’re going to plan to dispute the mistakes.
3. Dispute the errors and fix them
It’s quite possible to get minor errors and therefore you need to take care of all these mistakes to get removed from your credit report. File a dispute with any of the three credit reporting agency and dispute the dates, amounts, interest rates and all other negative listings in the report.
4. Try paying off your debts
Having credit card debt is the major thing which can affect your credit score. If you’re not able to pay off your credit card debts on your own, then try to seek professional help. You can get easy affordable monthly payments which will gradually boost your credit score.
Conclusion
Try not to be intrigued by the promising ads of the credit repair companies to get higher credit score. Booting your own credit score is tough but possible. So, have patience and be financially wise. Start following these above mentioned tips and practice healthy financial life. You’ll be able to boost your credit score and many other things (credit card, low interest) in coming days.