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3 Tips to Fix Bad Credit Stress

If you’ve found yourself looking for bad credit cards or being turned down for loan applications, you might ask how to fix your credit problem. What’s bad news? To solve bad credit and significantly increase your credit scores, you need to change your practices and that requires time and patience. But there are still measures […]

If you’ve found yourself looking for bad credit cards or being turned down for loan applications, you might ask how to fix your credit problem. What’s bad news? To solve bad credit and significantly increase your credit scores, you need to change your practices and that requires time and patience.

But there are still measures that you can take to maintain your credit today. You can try these tips to bump your ratings together with paying your bills on time and in full.

1. Check your loan records

A study conducted by the Federal Trade Commission in 2013 found that one out of four consumer credit reports had an error that could affect their credit scores. There’s no point in paying for mistakes you didn’t make, so look at your credit reports. Look for: wrong addresses or other private data. This may be a sign that your accounts are combined with someone else’s.

Information that’s out of date. The Fair Credit Reporting Act sets out requirements as to how long negative information can remain on your report. And if you have acquired a higher credit limit, you may ask for an update to the document. A higher limit allows your credit utilization percentage, which is a significant variable in credit scores.

Replica debt. Does the same debt occur in a report more than once? Even if it happened in the last seven years, all but one mention should be removed. You are permitted to a free credit report from each office once a year or if your application is rejected by a company owing to poor lending. Take advantage of such facilities.

2. Be savvy with you shopping

The high street is full of bargains, we just don’t always see them. That because high street shops are very clever at hiding the offers and sometimes all is not what it seems. For instance, a supermarket might highlight an offer for shampoo at 4 100ml bottles for £5, making it £1,25 per 100ml, but in fact the 200ml bottle is £2, making it £1 per 100ml. So, it’s cheaper not to go with the offer. Supermarkets are very clever at marketing like this as they know very few people check the actual quantities of the product, they just get fixated on the ‘offer’ thinking it will save them money when in fact it could cost them more.

The same goes for online stores, so it’s important to be careful when shopping online to. Be sure to check for free delivery offers and 10-20% off promotional codes, especially when signing up with a new online catalogue such as Studio 24, Next or Littlewoods. If you don’t have a good credit file and are looking to get a credit line, there are a lot of websites you can use to compare the best catalogues for bad credit and find the best APR deals.

2. Lower your loan use

Divide your full credit balance by your full credit limits and you will find your credit utilization proportion and important variable in your credit scores. Generally speaking, the more accessible credit you use monthly, the worse your rating will be. Some ways you can increase your percentage: pay off your debt. It may not be easy to keep your balance low, but it is an excellent way to upgrade your loan standing. If your issuer allows it, you can help paying more than once a month.

Obtain a larger credit limit. A higher limit will drop your usage rate immediately as long as you don’t spend more. If your card issuer allows you to boost your limit, take it — unless you know it will result in more spending. If your issuer doesn’t offer, you can ask for a higher limit. This may trigger a credit inquiry, however, which may impact your ranking for six to 12 months, so use this option cautiously.

3. Be intelligent about loan applications

 Your loan results are based on some, sometimes conflicting, fresh credit rules. Applying for new loan fallouts in a bad credit inquiry. But having more of it is nice, especially different types. How can these rules be reconciled?

Don’t apply for new cards or cancel old ones. Having balances on many accounts reflects badly on your credit, but having more accessible credit in total is a good thing. Do not cancel old accounts, but do not apply for new ones.

Consider loaning for yourself. Using a private loan to repay your debt can add a fresh kind of credit to your report— installment rather than rotating credit — which is positive as long as you are diligent in making payments. You can also get a greater interest rate than your credit card debt.

Gather fresh credit requests in a short timeframe. If you have to apply for a car or mortgage loan, limit your requests to a gap as short as you can. This will prevent numerous requests from being posted on your credit reports.

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