Let's face it - we live in a society that is totally dependent on credit. Whether you want to buy a house, rent a car, or even get a job, you need a loan. Unfortunately, there is very little information on how to maintain good credit standing. Is it any wonder that so many Americans have gotten hopelessly in debt? With a small amount of information about how to rebuild bad credit, many people are actions that look like the right thing to do, but only end up hurting their credit score even more.
So how do we break the cycle? Well, if you have terrible credit or just want to increase your score, there are some simple steps you can take immediately that will help increase your credit score. Below you will find five quick action that will get your score back where it belongs:
# 1: Check your credit report for errors
# 1: Check your credit report for errors
...very common source of low credit scores is reporting errors. After you check for a very obvious error, something else to look for is whether or not your credit limits are reported correctly. Your credit score is affected by your utilization rate, which is based on a percentage of credit limit you use each month. If boundaries are not accurately reported to credit bureaus, use the pulse will not be accurate and which could significantly affect your credit score.
...# 2: Start by taking steps to reduce credit card debt
It should seem like an obvious step, but many people do not understand where their loan should be compared to their limits. I like to call this tip 30/30 rule. 30 percent of your credit score is based on the outstanding debt, and if your credit balance is more than 30 percent of your credit limit, your score will drop. If you have more than 30% over the limit, the result will be affected, even if you paid on time every month. In order to raise your credit score, you must follow the 30/30 rule.
# 3: Not having credit is the same as bad credit
Your credit score is based on your credit history. If history does not exist, there is nothing on which the credit agencies to base their score. Unfortunately, this is not a case of innocent until proven guilty. By no credit history, which gives lenders a clear picture of whether or not you have a good investiciju.Kreditnih bureau think the same way. If you do not have the history, you are considered high risk. To prove that it can handle multiple lines of credit responsibly, you should have three to five credit cards, and you should also have an installment loan.
# 4: to become an authorized user
If you're in a situation where you do not have a lot of credit, or have pretty bad credit, you May want to consider getting added as an authorized user. As an authorized user, you get added to (preferably one with the same address), credit card account. This allows you to basically piggy-back on your good credit and reap the benefits. However, this only works if the credit card companies report your status as an authorized user on credit bureaus, and if the remaining balance on the card does not exceed 30 percent of the credit limit. Keep in mind that, although this is a great way to improve your score, if the account belongs to the poor is a result will also be affected negatively.
# 5: you can not build credit without using
This is a natural reaction for you to want to steer clear of something that caused the damage in the past. In fact, it seems to make sense that if you have credit problems, you probably do not want to continue to use credit. Unfortunately, this way of thinking can not be further from istine.Jedini way to rebuild your credit is to use it, so do not be afraid. Just follow the 30/30 rule and make sure that your debt under control and your credit will be returned in good condition in no time.
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