Do you have a bad credit score?
If so, you've got lots of company. An estimated 30% of Americans have bad credit, including people with good incomes.
A bad credit score isn't something you can just brush off. Banks use them to decide whether to give you personal loans or mortgages. Credit card companies use them to determine whether to give you a credit card, not to mention what interest rate to charge.
Even people who want to do damage control on their credit scores are often unsure what they should do. Getting a handle on how credit scoring works will help you with the big picture.
If you're interested in the details of how to fix your credit score, we're here to shed light on the subject. It can be done. It just takes some time and a …show more content…
A secured credit card is one way to get a new line of credit. You basically deposit a set amount with the credit card company and they give you a credit line in that amount.
The new line of credit lets you improve the mix and make on time payments. It's a double bonus for your score in the long term.
Tip 6: Limit Your Credit Applications
Every time you apply for credit, the lender performs a hard inquiry. Each hard inquiry puts a little dent in your score. The occasional hard inquiry is both fine and expected.
If you apply for a bunch of credit at the same time, it hurts your credit score a lot more. You look like you're in financial trouble, and the credit bureaus adjust your score accordingly. 0-1 inquiries per year is ideal, though 2 per year won't send up any red flags.
Tip 7: Keep Existing Accounts Open
You might be tempted to close credit card accounts you don't use. Don't do that. Those credit cards with no balances improve your overall utilization score. That makes you look better to the credit bureaus and boosts your score.
Tip 8: Authorized User …show more content…
When the credit card company issues you a card, it goes on your report. You glean the benefits of the other person's good credit and on-time payments.
If you do find someone willing to do this for you, the best thing you can do is put that card in a lockbox and forget it exists.
Tip 9: Pay Twice Monthly
Credit card companies report balances every month, but that day is probably not your bill due date. If your card company reports on the 21st of the month, and your due date is the 25, you've probably racked up some charges by then. It looks like you're constantly carrying a higher balance.
Paying out smaller amounts twice a month keeps your balance at a more representative level when the company reports it.
Tip 10: Up Your Credit Limit
A credit limit increase lowers your credit utilization score without needing to pay down the balance. This approach works best when you aren't likely to use that additional credit. You'll also need to be on good terms with your credit card company to get them to agree to the
If so, you've got lots of company. An estimated 30% of Americans have bad credit, including people with good incomes.
A bad credit score isn't something you can just brush off. Banks use them to decide whether to give you personal loans or mortgages. Credit card companies use them to determine whether to give you a credit card, not to mention what interest rate to charge.
Even people who want to do damage control on their credit scores are often unsure what they should do. Getting a handle on how credit scoring works will help you with the big picture.
If you're interested in the details of how to fix your credit score, we're here to shed light on the subject. It can be done. It just takes some time and a …show more content…
A secured credit card is one way to get a new line of credit. You basically deposit a set amount with the credit card company and they give you a credit line in that amount.
The new line of credit lets you improve the mix and make on time payments. It's a double bonus for your score in the long term.
Tip 6: Limit Your Credit Applications
Every time you apply for credit, the lender performs a hard inquiry. Each hard inquiry puts a little dent in your score. The occasional hard inquiry is both fine and expected.
If you apply for a bunch of credit at the same time, it hurts your credit score a lot more. You look like you're in financial trouble, and the credit bureaus adjust your score accordingly. 0-1 inquiries per year is ideal, though 2 per year won't send up any red flags.
Tip 7: Keep Existing Accounts Open
You might be tempted to close credit card accounts you don't use. Don't do that. Those credit cards with no balances improve your overall utilization score. That makes you look better to the credit bureaus and boosts your score.
Tip 8: Authorized User …show more content…
When the credit card company issues you a card, it goes on your report. You glean the benefits of the other person's good credit and on-time payments.
If you do find someone willing to do this for you, the best thing you can do is put that card in a lockbox and forget it exists.
Tip 9: Pay Twice Monthly
Credit card companies report balances every month, but that day is probably not your bill due date. If your card company reports on the 21st of the month, and your due date is the 25, you've probably racked up some charges by then. It looks like you're constantly carrying a higher balance.
Paying out smaller amounts twice a month keeps your balance at a more representative level when the company reports it.
Tip 10: Up Your Credit Limit
A credit limit increase lowers your credit utilization score without needing to pay down the balance. This approach works best when you aren't likely to use that additional credit. You'll also need to be on good terms with your credit card company to get them to agree to the