Understanding Bad Credit and Fixing your Credit Score

Understanding the credit score factors in bad credit and fixing your credit score before a loan can get you a better rate and save money.

Fixing your bad credit is actually pretty simple, as it turns out. You may not be able to do it overnight but there are ways to improve your credit score and get better rates on the money you need.

First step, check your credit report for errors

Check the whole report to make sure there are no errors. It happens more often than you would think, missed payments end up on the wrong person’s credit report and destroys their credit score. 

Other Credit Score Factors for Bad Credit

If your credit report is free of errors, there are still a few things you can do to improve your bad credit score. Here are the five credit score factors that affect your credit score.

Payment History as a Credit Score Factor

If you don’t have much of a credit history or you have a few missed payments on your report, you really need to work on building up a good payment history. This can take the longest to fix your credit score.

The total amount you owe on loans is the next most important part of your credit score. If you can pay off some of your loans, even for a short time, it will help increase your score.  

Amount of Debt and Bad Credit

One trick you can do to increase your credit score without having to find money to pay off debt is to ask for an increase on your credit limit. It’s weird that you can actually boost your credit.

Beat Bad Credit without Doing Anything

Swipe up to learn more!