Are You Staying On Top Off Your Credit?

Caleb’s story

A few years ago, Caleb (we won’t use his last name) was denied credit he desperately needed. He was on a rough strike. He had a good job and always paid his bills on time. Never any late payment, never defaulted but he was denied despite being a responsible guy. Why did he need the money. Like most people, when something in life goes wrong, which will happen sometimes, more may follow. This was Caleb’s bad five months. His close family member had passed on and the funeral directors bill was huge. After family members raising half the amount, Caleb thought to head to his banker of many years. The surprise was his credit card company by error had been reporting him as delinquent on one of his cards and after a few such reports over a period of a few months, the credit score drops big time. This will take a long time to sort out with his credit card company. It took several months to get it fixed and even longer to get his rating restored but the damage was done. He could not get credit when he desperately needed it.

Getting A Free Credit Report And Keeping Your Finances In Order

Free credit report services are helpful if you want to keep your finances in order. You need to know what your credit score is and what is on the report that you need to take care of. How do you go about finding the best report and repairing your credit?

A credit score can be found through a variety of free services. One thing you need to avoid is any website that tells you that you have to pay to see your score. You generally can look up your credit report free a few times a year, but after that it may cost you. In the report, you get information on what your score is and why that is the case. For instance, you will see where you owe money and why that is the case. It is mainly there to show that you are responsible when it comes to using credit through any company.

Lots of tiny balances

If you have any credit card balances, you need to lower them. Your score is going to be mostly based on how much credit you have available to you and how much of that is being used. Paying down balances and trying to eliminate your credit card balances altogether is always a helpful way to improve the score. A lot of tiny balances add up and if you can do whatever it takes to get that number of cards down that you owe money on, it can have a positive impact on your score.

You can negotiate with a creditor so that they can erase anything that you’ve already paid off. Even if you didn’t pay something off, you can ask the creditor in a letter if they could take the remaining balance off of the report as long as you pay it. You need to also try to dispute any errors that you know are not true. Sometimes your score is low because of mistakes that you had nothing to do with but can get fixed because they’re obvious errors.

35% of your FICO score

Get together all of the bills you need to pay and make sure that they are taken care of on time. Having a late payment go in or not paying at all on some bills can make your score change for the worse. Late and skipped payments account for 35% of the FICO score. The good news is that now, if you have money in your accounts, you can easily set up payments that automatically come out. This can keep you from having late fees and damaging your score if you’re always busy and tend to forget what you need to pay.

Plan of attack

A free credit report will help you to create a plan of attack so you can take care of any outstanding bills or problems that make it hard for you to have a higher score. One tip is to not worry too much about everything and just make an effort to pay off what you can as soon as possible. Keep in mind that big purchases you want to finance are going to sometimes lead to your score being checked. If you have a good payment option available that relies on your score, it’s best to wait until your score is improved a little so you don’t get denied.

The free credit report options are good to work with. Once you know what to work on to get your credit score to an ideal number, you can get started. Learn more here and have a realistic goal of improving your credit score by at least fifty points this year. It can be done.