When you have bad credit, it makes it extremely difficult to be able to be approved for new credit. You essentially need new credit on your credit report to start building up your credit score. Being in this situation can make you feel very discouraged. There are couple things you can do to start helping your credit.
Many people choose a starter loan to start helping your credit score. The problem with start loans is that they are for small amounts and the loans are normally financed for months and not years. Once the loan is paid off and the account closes, it can potentially drop your credit score again. We highly recommend secured credit cards. Secured credit cards require a cash collateral deposit which then becomes your available credit. However, depending on your credit score you may not qualify for all types of secured credit cards as they too require a credit check.
Secured credit cards work the exact same was as a credit card. It is very important to ensure that all your payments are made on time. This will help your credit history which accounts for 35% of your entire credit score. It is also important you keep your secured card with a balance of 10% or lower of your credit limit, for example if you have a credit limit of $300 you should be keeping your card at around a $30 balance on a monthly basis. This will help your debt ratios which accounts for 30% of your entire credit score. Your payment history and your debt-ratios account for the 2 biggest portions of your credit score.
Now, a very important thing to keep in mind is even by adding new credit depending on how damaged your credit is new accounts may not help you credit score go up as much as it should if there weren’t so many derogatory marks on your credit report holding your score down. There are so many different factors that may affect your credit score. I truly recommend coming into our office to pull an updated credit report for you and review it with you as everyone’s credit report is completely different. There may be so much more you are able to do to help better your credit that you may not even be aware of. Whatever your situation is, WE CAN HELP YOU!
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for more details and to discuss your own individual situation.