If you are feeling anxious about your current credit score then please take a moment to give yourself a break. Nearly 40% of Americans do not even know what their credit score is. So, by simply taking the time to read this article you are taking a huge step ahead of many of your peers. Another thing to remember is that if you want to improve your credit reports, then you are probably thinking about taking another big step in your life. This could be in the form of a car, a house, or something else. A lot of questions are probably running through your mind. How much does LMI cost? Can we afford the payments? Is this even possible? We’re here to remind you that it is very much possible and that you are on the right track, so here are some tips that will help you take your next big step toward financial health.
Obtain Your Credit Reports
Your payment history comprises 35% of your overall credit score, so having access to these reports is a vital first step to repairing your credit score. Read through these reports and make sure that there have been no errors put in place on the side of your creditors. With so many clients, it’s easy for the data entry team at the bank to put in an incorrect social security number or birthday. Errors like these can take a toll on your overall score. If this happens simply look up your bank’s phone number and give them a call.
Pay Off Past-Due Debt
While this may seem scary at first, with the proper systems set in place you can do anything. Famed money writer Ramit Sethi has created a free Credit Card Payment Calculator that puts together a payment plan for you. It tells you exactly when you will be debt-free if you stick to the plan he sets out for you. While you are healing your credit card it’s important that you don’t make any more purchases on that card. Additional purchases will only increase the amount of interest you pay and put you further in the hole. It’s also crucial that you avoid opening new accounts and keep the current accounts that you have open. The longer you keep an account open the better it affects your credit score. You may be tempted to close your credit card account so that you no longer touch it, but that would be a bad idea as closing accounts with high debt only reduces your credit score even more. Additionally, opening up new accounts raises red flags for creditors and could hurt you as well. It’s best to make your purchases with cash or debit while you are letting your credit score heal.
Get Consumer Credit Counseling
Everybody needs a little help from time to time, and credit counselors can be an amazing asset to you. However, make sure that you take the time to look up the people or organizations that you are enlisting to help you. It wouldn’t be unwise to head over to golookup.com and get a completely free background check. Golookup is a search engine and background check company that access information made public by the federal government. You will have access to court records, criminal records, bankruptcies, and more. Many counseling agencies are amazing and want nothing more than to help their clients, but it pays to be precautions and to be sure that you can trust the agency you choose to get help from.
Keep Your Head Up!
Patience and persistence are the two biggest allies in this game. Remember that many people have gone through the same situation as you and were able to grow their financial health to astounding levels. It’s common to feel emotions like fear and doubt while raising your credit score but just remember that 40% of Americans are hiding their head in the sand when it comes to their credit. By taking these steps, you are empowering yourself and telling the world that you deserve the financial freedom.