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How do we get a good life? Money isn’t the only answer, but it certainly helps. Unfortunately, the educational system does not provide enough information about the financial world, so when someone wants to improve their living conditions, they might face problems they did not even know about.
Some of the most well-known problems are not being able to rent an apartment, the inability to finance a car loan, and not being able to find a job. Statistically, the average credit score of U.S. citizens is 716. However, many people under the age of 50 have a score lower than 700, which may pose a problem even in smaller cities like West Palm Beach.
Tips to Fix Your Credit Faster
Considering all the benefits of a good credit score, people want to increase their scores as fast as possible. If you are one of those people, here are some basic tips that will help you fix your credit in less than 90 days.
Run a Credit Report
Firstly, it’s a good idea to assess your circumstances. The first thing you should learn is how your credit score is calculated. The most well-known model takes into account five key elements:
- Payment history (35%)
- Amounts owed, aka utilization rate (30%)
- Length of credit card history (15%)
- New credit (10%)
- Credit mix, which includes credit cards, installment loans, finance business accounts, and mortgage loans (10%).
Now that you know how your credit score is broken down, you can search for a free official report online to learn about your credit situation. Everyone is entitled to one free official credit report per year.
Reduce Late Payments
Late payments can pose a severe problem to your credit score since it is the most significant part of your score. It can also leave a seven-year mark on your credit report. One missed payment might lower your credit score by 60 to 110 points. The general rule when it comes to late payments is that the later it is, the worse it is for your credit. Promptness and alertness are required to avoid late payments, and perseverance is required to remove them from your record.
There are a few alternatives for seeking removal; the most common and effective tactic is phoning the original creditor and requesting a goodwill adjustment. Another option is by paying the oldest invoice and keeping track of the new ones so that you can reach the floating line.
Get The Help of an Expert
As mentioned before, many people are unaware of the procedures involved in increasing their credit score and clearing their debt history. For this reason, credit repair companies such as My Credit Repair Clinic take charge of maximizing their clients’ credit scores by managing negotiations and analyzing their account situations to find possible misunderstandings or errors. A professional is beneficial since many of these procedures require an expert’s knowledge.
Increase Your Credit Limit
Credit card use affects your credit score significantly. The ratio of available credit to credit utilized matters a lot. A balance of more than 50% of your available credit will generally lower your score; maxing out your cards will almost certainly lower your score as well. So the best solution is to call your creditor and inquire about a credit limit increase. Most credit card issuers will gladly boost your limit if you have a good payment history.