Millions of Americans are currently experiencing economic hardship. For most of these people, their current financial situation is not their fault. Unemployment, cuts, layoffs or unexpected medical problems may have solved additional bills and payments that you have not planned.
The bad news is that all these financial difficulties will affect your credit score... which in turn will affect your life. A low credit score may prevent you from getting a new home, a new car or even a new job you've been looking for.
The good news is that bad credit scores don't have to last forever. You can now take many simple steps to start fixing your credit score and improving your life.
Let's take a quick look at what your FICO score is and what you can do to fix it.
Your FICO score is based on the mathematical calculations of the five main areas of the financial background listed in your credit report. These are: the extent to which you pay your bills on time, the amount of debt you have, your credit history, any new credits you have recently applied for, and the different types of credits you may have.
In this article, we'll look at the top 3 categories...because they are responsible for 80% of the scores and are the projects you can actually control
You can improve these areas and improve your credit score by following these tips
Pay bills on time
Paying your bills on time is the most important step you can take to determine your credit score. Doing this...or not doing it... has the biggest impact on your score, because the cost of paying your bills on time is 35% of your FICO score. Regardless of your situation, you must make sure you try to keep all bills up to date.
Repay your debt
Responsible for 30% of the score, repaying your debt is the second most important step in fixing your credit score. Lenders are not only interested in your ability to repay debt, but are also interested in the total amount of debt you have. As a side benefit, the payment balance will allow you to pay any type of working account per month, such as a credit card, smaller... making it easier for them to pay on time
As you can see, repaying your debt and paying your bills on time account for 65% of your score. The benefit here is that these two steps are under your control - through these two steps, you can have a major impact on your credit score and quickly rebuild your credit.
View your credit report
Your credit history is 15% of your score. Since your score is calculated based on information held by the credit bureau, your credit report and scores go hand in hand. Having a good credit report will give you a good score... although there is a good credit score telling the lender that you have a good report.
If your score is low, there is something in your credit report that will lower it.
One of the main steps in credit score repair is to get a copy of your credit report to find out what your score is... and what items you might need to work to improve your credit history. This is easy to do because there are many websites that offer online credit reports.
Orignal From: Quickly fix credit scores - 3 credit repair tips to quickly and easily fix your FICO scores
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