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If you’ve noticed that your credit report is turning up more negative items than you’d prefer, don’t panic—there are steps that you can take to improve your credit over time. Freedom Financial is encouraging Americans to take control of their credit with independent credit repair that they can plan and implement from the comfort of their own home.
Having bad credit can make your life unnecessarily difficult. Freedom Financial has found that those with lower credit scores have a more difficult time securing the loans that they need for school, a new car purchase, or a mortgage. Freedom Financial as even discovered that some job applicants in the government and finance sector have had requests from interviewers to review their credit report before being offered a job. A good credit score indicates to lenders and employers that you’re responsible, and don’t spend money that you don’t have, which will make them more likely to trust you with a loan. Taking time to repair your credit score is worth the time and research.
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You don’t need a professional to help you start improving your credit today—here are a few quick steps that will get you on the road to a healthier financial future that you can do yourself!
Retrieve your credit report. You can’t start repairing your credit until you know what is contributing to your low score. You are entitled to a free review of your credit report and credit score once every twelve month period—you can find yours by visiting annualcreditreport.com.
Know what contributes to your credit score. Your credit score is an indication to credit card companies or lenders of your likelihood that you will pay back any money you borrow—a higher score is an indication that when you have borrowed money in the past, you have done so responsibly. The number one thing that you can do to improve your credit score is to pay off any outstanding credit card balances and make at least the minimum monthly payments on each of your accounts- Freedom Financial has found that about 35% of your credit score comes from paying your accounts on time, so this will have the highest impact on your credit profile.
Become an authorized user. An easy way to improve your credit score is to become an authorized user on an account in good standing. Any credit account can have another user added to the account by the holder of the credit card; when a new authorized user is added, the account is automatically added to their credit profile. If you have a friend or family member who holds a credit card with a history of on-time payments, ask them to become an authorized user on their account. You can even become an authorized user without having a credit card associated with the account, so you won’t be tempted to spend.
Have collections removed. Most people know that having a collection put on an account will drastically lower their credit score, but not many people know that paying off the collection alone will do nothing to improve it. Contact your creditor to dispute any outstanding collections, or send a debt validation letter to the creditor’s office; when you send a debt validation letter, the creditor has thirty days to respond with information verifying the debt. If they fail to do so, then they are required to remove the collection from your account.
Improving your credit score can seem difficult, but it is far from an impossible task. With a good budget and on-time payments, you can begin building a credit profile that is more in line with your wants and needs. If you need assistance, there’s no shame in asking for help—contact Freedom Financial for assistance with financial planning for the future.