About This Lesson
Having good credit scores are essential in today’s society. Most items that you need to purchase will require that you have good credit. That being said sadly, having a good credit score is not something that is taught at most schools. You will also be given better interest rates depending on how good your credit is. If you don’t have good credit, you can repair your credit as well. Items that will affect your credit include limited credit, late payments, and negative credit. Other things which may affect your credit negatively include high balances on your credit accounts. This will show that you have overextended your credit. Many creditors see this as a negative aspect of your credit report and your credit scores will also reflect this as well.
Limited Credit Accounts
Having very little credit will also affect your credit scores as this is considered a thin credit file. You want to have an equal balance of good credit and moderate usage on your credit accounts. Accounts that will affect your credit negatively include collection accounts, late payments, bankruptcies, foreclosures, and repossessions. To maintain a healthy credit file, make sure to make all of your credit payments on time. Good credit payments include payments made within 30 days of the due date on your account. Any payments made after 30 days will be considered late and will have a negative affect your credit score.
Dispute Incorrect Items
If there is something on your credit report that is incorrect, you can always dispute these items and have them removed as they will lower credit score. If you dispute these accounts and have them removed, your credit score will go up. You should always be aware of the items on your credit file at all times so that you do not have items on your credit that are incorrect. This can have a negative impact on your credit scores.
Credit Repair Services
If your credit profile is not healthy and you would like to improve it, you can always hire a credit repair service. Credit repair services will review your credit for accuracy and dispute all accounts which are not accurate. They can improve your credit scores by deleting items which are incorrect and disputing negative items which do not belong to you. You can obtain information regarding credit repair companies by checking the reviews from other customers. Sky blue credit repair reviews is a great example of where to start if you’re looking for help with your credit score.
Good Credit Gives you Options
If your credit score is low and you have a lot of negative credit it will be difficult for you to obtain new credit, home mortgages, car loans, and other types of financing. This is why having an accurate credit score and credit report is very important. If you have had challenges in your credit in the past, you can increase your scores by having secured credit accounts as well. Make sure these companies are reporting to the credit bureau and make sure to always pay these secure credit accounts on time so that you will have a positive credit rating. This will begin to raise your credit score. Once you have done this for a certain amount of time you will notice that your credit scores will increase
Get a Co-signer
You can also obtain new credit accounts by allowing someone to co-sign for you. This will increase your credit as well and allow you to obtain new credit. One of the most important things to remember is not to over extend your credit. Your credit should be based on your income and your ability to pay your accounts. If you have too many credit cards or credit accounts and you cannot properly make the payments based on your income, they will have a negative impact on your credit report and your credit scores.
