It’s easy to slip down the credit ratings, especially if you’ve missed the odd credit card payment or fallen behind on a loan. So, what can you do to bump up your credit score? Most quick fixes don’t work but is it possible to take the express approach to repairing your credit rating?
Read more: Is there a quick fix for a poor credit score?
A credit report details the credit an individual has been awarded, including home mortgages, automobile loans and credit cards. Credit reports list the details of each account, including the credit line or the amount of the original loan, how much is owed, the monthly payment and the payment record.
In addition to cataloguing credit accounts, a credit report lists personal information, collections or negative account information and details about any judgments that have been entered against the individual. A list of the companies that have requested a look at the credit report will be presented in the inquiries section as well.
Read more: What is a Credit Report
An individual’s credit score has a huge impact on their overall financial health; a good score can help secure loans at competitive rates, while a poor score may trigger high interest rates, or prevent a consumer from getting loans at all. Thankfully, there are ways to improve credit reports and scores and secure the best rates possible.
Read more: How can I improve all my credit scores?
Picture this scenario. Two people walk into an electronics store and see the sweetest home theatre system, the sound is awesome, the picture is incredible, and better still, it is on sale. You need it bad. There are signs everywhere offering no money down, or no interest for 12 months. A sales clerk walks over to you and says, “We can get you approved right away.” You answer a few questions, and within minutes one of you is hauling a brand new home theatre system out to your car, while the other one goes home disappointed.
Read more: The Secrets of Credit: Your FICO Score and what it means to you
Managing your credit is an important part of managing your finances. In many situations, individuals need to file bankruptcy. If you do, you may know that this action can help you to get out from under a debt burden but it also places a black mark on your credit file for up to ten years. During that time, it can be much more difficult for you to obtain credit. Because of this, individuals who are just considering the use of bankruptcy should carefully consider their options and determine if it is the best overall outcome.
Read more: The Impact of a Bankruptcy on My Credit Report
A loan modification occurs when an individual requests that the lender make changes to the terms of the loan in the hopes of making it easier for the borrower to repay the debt. It makes sense to go to your lender whenever you are facing financial difficulties and to ask for such a discount or help. However, what you may not know is that there is a connection between a loan modification and credit score. In many cases, you could see a significant drop in your credit score because of this process.
Read more: Did My Credit Score Take a Hit Do to a Loan Modification?