[Y]ou get a lot of advice when you research online about how to improve bad credit. Some of it is not so good, a waste of time or worse. There are three major mistakes that people make when they are trying to rebuild their credit rating.
Mistake #1 – Hiring a Credit Repair Company
You’ll see advertisements on pages about credit from companies that claim they can raise your credit score by 100, 200 or even more points in 30 days. What they fail to tell you is that what they’re doing is just disputing information on your report. While it may disappear for a while, it often returns in the future.
The biggest problem with these companies is that they charge a ridiculous price for their “service.” Some charge a set fee per month while others charge per item. Either way, you’re paying for something that may not work.
Mistake #2 – Applying for a lot of New Credit
One of the best ways to help your credit score to improve is by establishing a positive history with new credit. However, many people start applying for a bunch of credit cards without even researching their requirements. While one inquiry on your credit report from a new creditor won’t have a big impact on your credit score, multiple inquiries could hurt it.
You also reduce your chances of getting approved when you apply and get turned down for credit. Take the time to find out the requirements and which creditors are more likely to approve an application from someone with your credit score.
3. Mistake #3 – Not Checking their Own Report
Before you take any steps to fix your credit, you need to know what is on your report. Get a copy of each of your credit reports from the three credit bureaus and see what information is on them. This allows you to know what is dragging your score down and what you need to work on. You can also find any errors and dispute them, which will also help improve your credit score.
If you are just starting out on your own, you may have a hard time getting credit cards or loans because of a lack of credit history. You must build credit to get access to the best credit cards and loans, but you can mess things up if you don’t know how to do it […]
One of the worst feelings you can have is when you have a bill coming due and no way to pay it. You have either spent all of the money or you have to spend it on something more important. You don’t want to have to deal with those phone calls from creditors because you […]
[Y]ou open up the credit card statement only to see another $30 late payment fee assessed. Ugh! You can’t believe you forgot to make a payment on time again. In between running the kids to daycare or school, meeting with clients and taking care of errands on the weekends, some things just get pushed aside. […]
[G]etting approved for a credit card is a sign of responsibility. It can give you freedom with your finances. For instance, you can book a hotel or buy airline tickets, which would be difficult without a card. You should know why you want a credit card and understand if those reasons are good or bad. […]
You hear financial experts preach about getting out of debt. They tell you to cut up your credit cards and pay for everything with cash. While some people may need to follow this advice, you may wonder if it’s the case for everyone. Should you avoid ever having any kind of debt again? Not Avoidable […]
[T]he busy summer season is behind everyone, and the upcoming holiday season is a few weeks away yet. Now is the time to focus on goals you have set. One of the most important is saving money. Fall = Transition Time You are transitioning from the lazy days of summer, times when you spent a […]
[W]hen you hear about identity theft, you may think about all of the public computers in use as well as the credit card machines in stores. While these are all areas that are vulnerable to hackers and those who want to steal your identity, one of the most dangerous areas is at home. Why? Because […]