How Do I Fix My Credit?

Credit scores can be very fragile and confusing because so many factors play into them. At the same time, having a good credit score is very important for daily living things, such as living expenses, car insurance, and loans. It can be daunting trying to fix credit. Luckily, Elevated Credit Repair is here to help. 

What is Credit?

Credit is used in the consumer industry to indicate how trustworthy you are with paying back the money you have borrowed. Your level of trustworthiness with borrowed money is measured by a number known as a credit score that ranges from 300 to 850. This score is impacted by many factors, such as your credit history, the total amount of debt, debt payment history, number of open accounts, accounts in collection, and overall debt to income ratios. Financial institutions report this activity to credit bureaus, who then calculate a credit score based on that information. The higher a person’s credit score, the more likely they are to be trusted by lenders and creditors to borrow money or take out lines of credit. 

There are two main types of credit that consumers frequently use. One type is known as installment loans. These are specific amounts of money that borrowers take out to use for a specific purpose. Examples of installment loans include mortgages, car loans, or business loans. The other type is known as revolving credit. This is a never-ending line of money that you can borrow and keep paying back each month for everyday items. People often use revolving credit by swiping a credit card for costs like gasoline, tickets, furniture, or travel.

Why is Good Credit Important?

Having good credit is important because it makes life in general easier. It helps you to have more access to things and with more ease. Here are some examples of how good credit can benefit you 

• You will have access to lower interest rates on loans and credit cards. This means that over time, you actually pay less than you would if you had bad credit, and you can pay off your debt faster because you are not paying as much in interest.
• Having good credit makes it easier to secure a loan for a house. It’s very difficult and takes a lot of extra work to get approved for a mortgage with bad credit or no credit at all. Having good credit makes this process much simpler. 
• Not only does good credit help lower your interest rate, but it also makes you qualified for higher credit amounts, which is helpful when you may need to take out a loan for larger expenses, such as a mortgage, business loan, auto loan, house repair, etc. 
• Good credit helps you get better rates on your car insurance. 
• Good credit helps you bypass utility deposits which saves money in the long run.

What are Examples of How to Fix Bad Credit?

Here are some examples of the easiest way to fix your credit. 

• Check your credit report for any errors and dispute them right away. You are allowed to run your credit report once per year without penalty on your credit score. Use this to your advantage to keep a close eye on your credit report and dispute anything that looks incorrect. If you are successful in disputing it, you can get it taken off your credit report which can help your overall credit score. 
• Pay your bills on time. Paying your bills late consistently can cause your credit score to drop because your creditors report your payment activity to the credit bureaus. It’s important to get into the habit of paying your bills on time regularly because this is one of the easiest ways to boost your score. 
• Decrease your credit utilization rate to 30% or lower. This can be not very clear to discern when you’re using too much credit and not enough. Generally, if you’re not using credit, your score may lower over time due to inactivity. Your score can also lower if you’re using too much credit. It’s important to find a happy medium and keep it at 30% or lower. 

How Can Elevated Credit Repair Help Fix Bad Credit

Credit scores and credit reports can be very confusing. There is a lot of data that goes into them, and it can be overwhelming to learn what you should and shouldn’t do when trying to build your credit. Elevated Credit is here to save you time by guiding you through the process of improving your credit so that you can gain financial freedom. Our services include credit report analysis, resolving credit disputes on your behalf, and ongoing credit monitoring. Call today to schedule a free consultation to create an individualized action plan to improve credit.