These days we need to realize that having good credit scores is the only way that you can afford to buy a house or a car or also if you want to indulge into buying a luxurious watch or mobile phone. However, not everyone has a good credit score and there are a few important steps which must be taken immediately if you want to rebuild it.
So, what is a credit score?
A credit score is a numerical score that indicates your payment history. This score/number is used by businesses to identify if you have the capability of paying back the debts for the purchases made. A vast majority of companies use the FICO score to determine how much credit they can risk offering to you.
What does it mean to have a good credit score?
Credit scores have a range from 300 to 850. Being on the higher end of this range indicates that you have a good payment history such as making on-time payments and a sparing use of credit. Having a score anywhere above 700 is considered to be a good score by many creditors. Whereas, having a score approximately below the 630 mark is considered to be bad and requires fixing. Any score in between that range can be considered as an average score and you can improve it over time.
How can you fix your credit scores?
You can fix your credit scores by yourself or you can take the help of a Credit Fix Company.
Fixing scores on your own can be done if the damage is not severe and you have ample time. It will take a few months before you start to see changes in your report.
Following are a few tips on how you can improve your scores on your own.
Keep a track of your bill payment:
Bill Payment has a major impact on your credit scores, so it is better to keep a track of them. Keep payment alerts set up so that you avoid going past due dates. You can use google alerts or you can even place standing instructions with your bank to make your payments before it’s passed due.
Delinquency in Credit payments:
Whenever you have monthly outstanding payments on your credit card, it is better to make the monthly payments in full. If you just make the minimum amount due or any other amount lesser than the total, it keeps adding up and the interest on it also adds up and you end up with a huge pending sum once again. And the major drawback is that with every partial payment that you make, your credit scores go lower every time.
Limit credit usage to a minimum:
When your credit scores are low, it is better to limit your credit usage and keep it only in case of emergencies. This will help you to avoid worsening the pay back burden.
Keeping a Track of your progress and using Credit monitoring:
Credit Monitoring service can be a great way to track changes in your credit scores. It also helps to keep you protected against identity theft and illegal usage of your credit card if it is lost or stolen. Credit monitoring services will keep you informed in case a big purchase has been made in your name without your knowledge.
How does a Credit Restoration Company or a Credit Fixing Service help?
Taking the help of Companies that fix your credit can help you save time and effort. These companies help by appointing an attorney to your case who are experts in disputing any errors that might reflect in your report and get them removed.
Let us have a look at how they can help on a step-by-step basis.
Evaluation and Scrutiny of your Credit Report:
As credit fixing companies are experts in understanding credit reports, they are in a better position of evaluating what is placed correctly and incorrectly on the credit report history. They do this by getting a report from the three major credit bureaus Transunion, Equifax and Experian.
Setting up Enquiry with Creditors:
The credit fixing company sets up an Inquiry with the creditors to ensure that the charged items are accurate and not incorrectly billed.
Disputing Potential Errors:
Once the Credit Fix Company has evaluated and analyzed your report, they make a list of the errors which can be mistakes in the date of payments, duplicate or double payments, incorrectly charged items and expired items that have been made by the creditors and will start to dispute them. They are experts in communication which makes it easier to get these mistakes rectified.
Communication to stop harassment:
The credit restoration company sends written communication, i.e. depending on the severity of the condition, may send out cease and desist letters to stop unlawful harassment, when you are constantly bothered by debt collection agencies.
Whichever method you opt for is left up to you provided you make a conscious effort to fix your credit scores.
Doing it yourself may be a good option if you cannot afford a Credit fixing service or you have enough time to fix it and the damage is not so severe.
On the other hand, allowing Companies that Fix your Credit to take over your financial matters may be a better idea if your scores are really bad and if there are several areas where disputes in your records exist and expert intervention is required. ASAP Credit Solutions offers a wide range of services and will offer you a solution based on analysis of your credit history report and work on it accordingly.
At the end, a good credit score is your goal and as long as that is achieved, you can be at peace.