What Bills Can We Pay To Improve Our Credit Scores?
Can I fix my credit and improve my credit scores to get approved for better mortgage interest rates and loan programs? The answer is yes, and you can do it several ways. You can hire a credit repair company or you can do some things yourself to fix your credit.
What does Fix My Credit really mean?
To fix your credit implies that there is something wrong with your credit report. While there may be something wrong with your credit report, like credit card account reporting errors, you could just have recent credit inquiries, newly established accounts, or high balance to limit ratios that are pulling your credit scores down.
So Fixing Your Credit Report and Credit Scores simply means:
- Correcting inaccurate or wrong information on your credit report
- Establishing some type of new account and letting it season on your credit for 6 months
- Letting time pass from recent credit activity and paying down balances.
Find more ways to fix your credit visit: Fix Credit Report – 7 Ways to Improve Your Credit Scores
How Long Does It Take to Fix My Credit?
The smart safe answer to this question is anywhere from 1 month to up to 12 months or more depending on what has happened to your credit. In the case of a bankruptcy or foreclosure you can count on 24-48 months of recovery time once the negative credit hits your credit report. Your recovery time will also depend on how well you pay your other bills. In all cases, pay your bills on time – you will see a shorter recovery time.
Steps to Fixing Your Bad Credit
Establish Secured Credit Card Account – One step to take is to get a secured credit card account from your bank. Many banks have these accounts. You will need to set aside $300-500 that the bank will hold on your behalf and they will issue you a VISA or MasterCard against your set aside. You do need to make sure that your bank reports activity to the credit bureaus. You need to work with a bank who will report activity to the credit bureaus.
Use Your Credit Wisely and Timely – If you are new to having a credit card, use it for gas and food during the month instead of paying cash and then pay it off at the end of the month. An inactive credit account does not help your credit scores improve.
Pay Your Bills On Time – Do not be late on paying your bills. This is the biggest factor in why credit scores go bad. It is also one of the biggest underwriting considerations is how often have you been late in the past 12-24 months. If you are going to move from one place to another, do not let your mail lapse so that you miss getting your bills.
Stopping Letting People Pull Your Credit – Too many credit inquiries can kill your credit scores. This is especially true if you do not have a big credit history. More history with more accounts, inquiries will not impact you like having little credit. If you have gone through a period of credit inquiries, go through a few months of not letting anyone pull your credit.
Keep Old Accounts Active and Alive – If you have an old credit card that you do not use, but keep for emergencies, you should consider using it. Activity matters on a credit account. Also, do not close it out if you can help it. Length of credit history is a factor in your credit scores.
For GetPreQualified.com for additional information on how to fix credit.