Poor credit can hinder you from getting home, automobile and personal loans. This is the primary reason why you should take measures to make sure you have an exceptional credit score.
Contrary to popular belief, improving your credit score is not as difficult as you may believe. However, it will not happen overnight.
It will take several weeks or months for your score to improve. In this article, we will take a close look at several ways to improve your credit ratings.
You are bound to see positive results if you use them correctly.
Create a Realistic Plan
You must create a realistic plan to increase your credit score. You should be aware of what you did wrong and what you can do to fix it.
Please keep in mind you’ll not be able to turn things around without taking action. Create a solid plan and carry it out.
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Monitor Your Credit Score
It’s vital for you to watch your credit score closely. This will help you make certain your credit report doesn’t have any errors.
To be sure, errors can dramatically lower your credit score. Many credit experts recommend you should check your credit score at least twice a year.
This simple act will help you keep errors off your credit file.
Dealing with Collection Agencies
Collection agencies will not hesitate to put delinquent accounts on your credit file. Fortunately, you can dispute them.
Just send a cease and desist letter to the collection agency. The cease and desist letter will also challenge the collection agency’s legal right to collect on the delinquent account.
Make sure you send the letter via certified mail with return receipt. This will prove the collection agency received your letter.
The agreement must have your signature. In layman’s terms, “No legal agreement, no collection!”
Get a Secured Credit Card
Getting a secured credit card is one of the easiest ways of improving your credit score. With a secured credit card, you’re borrowing against your money.
This protects the bank from any potential loss. In return, the bank will report your positive activity to the credit bureaus.
Make sure you make your monthly payments on time. Over time, the secured credit card will help whip your credit back into excellent shape.
Become an Authorized User
Do you have a relative or close friend with good credit? If so, ask them if they would allow you to become an authorized user on their account.
When you become an authorized user on their account, their positive activity will increase your credit score. To be honest, this is the easiest way to improve your credit score.
It’s also the fastest way to get your credit back on the right track.
Concluding Thoughts
Credit is one important issue you cannot afford to overlook or ignore. A low credit score can make it extremely difficult for you to get approved for loans.
The tips above can help raise your credit score within several weeks or months. Please keep in mind you need to take action and exercise patience during the process.
In the end, you’ll become the perfect candidate for home loans, car loans and personal loans.
Are you struggling with high interest rates, skyrocketing bills and a damaged credit score. Get great tips on how to protect your family’s financial future.
is there any way to get credit cards under 21?
Hi Aayush
Great question! As you identified 21 is the legal age you can apply for your own credit card. Although, I’m not a financial advisor, it’s my understanding you can also apply for a credit card at 18 with a cosigner or have proof of income. If you’re a minor, a parent or guardian can add you as an authorized user. I hope this helps.
Gerardo