Are you struggling finding a loan because you have a low credit score? Having bad credit isn’t a life sentence. You can do things to raise your credit score.
1. Pay your bills on time. Even if you’ve been delinquent in the past, paying on your credit cards monthly starting now you’ll begin raising your credit score.
2. Keep credit card balances as low as possible. It’s better to have five credit cards with small balances rather than having two credit cards with large balances. Your debt to credit ratio is figured out this way and many lenders use it to decide if you should get a loan or what your interest rate will be.
3. Don’t sign up for too many credit cards. While having credit is good, having too much can hurt you too. However, if you don’t have any or just one, it could help you establish more credit by getting a second one.
4. If you have a dispute with a credit card charge don’t let it go and not pay it. It will look like a delinquency and decrease your credit score – even if it’s not your fault. Work with the credit card company to either ensure it doesn’t get reported OR pay it and then work on getting a refund.
5. Request your credit report and check for errors. If there are erroneous charges on it, take care of it as much as possible. If you can’t resolve it, pay on it to get it eliminated.
Remember if you are looking to get a loan in the near future, you may want to look into credit rescoring.
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