Hello my fellow finance lovers! Welcome to another financial blog post.
Credit is one of my favorite topics to discuss because I love it so much. I have fixed my own credit twice in the past and I have a investment property so I feel quite educated in this area. If you find that your credit is stagnant and your looking for a extra boost, try the following:
PAY YOUR CREDIT CARD BALANCE DOWN TO AT LEAST 30%
- This is MAJOR KEY! Once you pay your credit cards down your score will literally sky rocket. Maxing out your utilization will bring your score down because your reflecting that you have no credit available to you. If you have a $300 credit card, you should only technically use 10% which is $30.00 and then pay it off at the end of the month. Do this for three months.
- IF YOU DON’T HAVE A CREDIT CARD, apply for a secured card to help build your credit but still using the same strategy as stated above.
- First Access credit card is a great start (for building purposes only), but remember don’t max this card out as the interest is extremely high.
PAY YOUR BILLS ON TIME & DON’T APPLY FOR NEW CREDIT
- Always, always , always pay your credit card or anything that is reporting to the credit bureaus ON TIME. Do not go past the 30 day mark because you score will drop substantially. If you have to borrow money or return something, please make sure you are making the minimum payment necessary before the bill is due. Late payments stay on your credit for 7 years.
- In addition to paying your bills on time, it is crucial that you do not apply for new credit in your credit repair process. Any time that you apply for new credit, that inquiry stays on your credit for two years and decreases your score by two points each inquiry.
NARROW DOWN WHAT YOU NEED TO IMPROVE/DELETE
- Narrow down any entires that you need to improve or delete in order to bring your score up. If you have a collection then you may want to call the creditor and ask for a “Pay for Delete” negotiation. Most of the time when you pay a collection agency, your score will not improve, instead it will stay the same. Therefore, negotiate with the creditor for them to delete the negative entry to pay in return. Getting any negative entries removed will definitely improve your credit. The goal is to have no negative on report and all positives.
Thank you all for reading my blog post, I really hope that this was helpful to you!