How to Get a Good Credit Fix
Posted at by ifydcat on category CreditMany people would like to have a good credit fix; however, there’s a lot of misleading information about fixing credit. How do you fix your credit?
This article will discuss the fundamentals that go into your credit score. If you want to get a credit fix, the most important thing is to pay your bills promptly.
That is the biggest factor that goes into it. What we see is, a lot of people sign up for these services to improve their credit score and they don’t pay their bills on time, so they fix their credit score and they wind up and back in the same place at the same time. So again, pay your bills on time.
The second fundamental of a credit fix, which you can’t do anything about, is the length of your credit history. This is important because you do want credit cards that you’ve had for a while. Keep your credit cards for a while if you have them. You don’t want to get carried away and keep getting new cards just because they’re showy or have low interest rates.
So build up some history and if you’re young, you can’t have a lot of history at this point in time. But as you get older, you’ll have some more history. The length of your credit history will let banks and lenders know more about you, and if you’re going to be a good credit risk for them. If you are, you’ll be able to get a credit fix more quickly.
The other thing is how much money that you are spending as a percentage of what’s available for you. Let me explain. Let’s say you have a $1,000 credit limit. Your credit score is going to look a lot better if you only have $500 of that credit used up as opposed to if you have $999 with that credit.
Because obviously, if you have $500, you’re demonstrating that you can manage your credit better than somebody who is maxing out all their credit cards. So typically as a rule of thumb, you want to have less than fifty percent outstanding balance as a percentage of your credit score. You’ll be able to fix your credit more easily.
The other big thing is, how often are you applying for credit? Store credit cards are the leading destroyers of credit scores. You get ten percent off for signing up today with these credit cards and you wind up having people with $100,000 of credit card debt on these credit cards. If you want to improve your credit, stay away from these store cards.
And then mix is very good. What the lenders want to see is a mix of car loans, credit cards, mortgages, and installment loans. They want to see if a person can handle the credit. So if you’ve got a good mix, you’re demonstrating that you’re handling the credit well.
These companies make their money in lending, so it’s better for them to give you a loan than to not give you a loan. But of course, it’s best for them to give you a loan that you will pay off. They’ll prefer to work with people who are less risky.
Keep these fundamentals in mind and you’ll find yourself with a good credit fix and improving your credit score very easily.
