Understanding your credit score is the first step towards improving it. But if you’re like most people, then you’re probably wondering where to even begin. That’s why we’re here to clear some things up and make sure that you never have to walk your credit journey alone.
Here, you’ll find everything you’ll need to know about how your credit score works, how to dispute errors on your credit report, and how to improve your credit score.
Your credit score is a complete summary of the information found on your credit report. Based on your past financial decisions, you are given a score ranging anywhere from 300 to 850 that accurately reflects your level of financial reliability. It’s used by creditors, lenders, and landlords to determine your level of “creditworthiness” — or how financially risky you may be.
Your credit score falls into the category of “bad” if it is below 620. A good credit score is seen as low risk, while a bad credit score is seen as high risk. The riskier you are in the eyes of lenders, the more likely they are to tack on high interest rates.
Your credit report is meant to be an up-to-date summary of your financial reliability. But reporting errors can happen, and if left unchecked, they can harm your credit score.
Reporting errors are very real, and they can have very real consequences, too. For instance, you may find items on your credit report that were resolved years ago but are still wreaking havoc on your credit score. In this case, you have the opportunity to dispute the reporting error.
Disputing credit errors gives you the chance to remove negative items from your credit report, and our products and services are ready to help you make it happen. Because you shouldn’t have to sit around and let someone else’s mistake continue to harm your credit score.
Fixing bad credit seems like a monumental task, but it’s completely possible. There are several ways you can start improving your credit score. Here are just a few:
Paying off your credit card debt is always a great thing. Most people are tempted to close those cards after finally resolving their credit card debt. But if you do that, you’ll forfeit your ability to generate good credit. It’s better to keep your old cards, use them responsibly, and consistently make your payments on time.
Having too much debt on a single card will look pretty bad to creditors and lenders. But if you have multiple cards with low balances (ideally below 30% of the available amount), you’ll be seen as someone who evenly pays off multiple cards as opposed to someone who wracks up a ton of credit card debt and struggles to pay it off over the course of months.
To do this, you’ll need to get access to your credit reports on a regular basis and find out what day your creditors update your credit report. Once you find this out, you’ll be able to make your payments before they update your credit report to ensure that your creditors are only receiving the lowest balances when they send out your updates.
As we mentioned earlier, you’ll need to keep an eye out for reporting errors. If you happen to find an error on your report, you’ll need to dispute it right away before it has the chance to harm your score.
Now that you’re a credit expert, you’re ready to get started on your journey towards a better credit score. And we’re here to help make it easier on you. We’ll help you get the credit score you deserve so you can start enjoying more financial freedom. Stop worrying about your credit score and sign up with us today!
