If your credit score is less than desirable, do not fret. There are many things you can do to fix your credit. If you are looking to take out a mortgage, here are some things you will want to understand so you can work on credit repair.
First off, you should understand what a credit score is. These numbers label individuals to determine how creditworthy they are. Anything that is 740 or greater is considered to be excellent credit. Those who have a number from 680 to 739 will find their credit score is good, while the average will be anything from 580 to 679. Five hundred to 579 is below average, and poor credit is anything under 500.
If you want to fix your credit score, one of the first things you need to concentrate on is paying your current bills. Your bills account for 35% of your credit score. These bills should be paid on time. This includes utility bills, charge card bills, rent, and any other lender. Within just three months, you will see your credit score begin to rise.
Next, you want to consider raising your credit amount. Then stop using your charge cards. This will allow you to decrease your credit utilization score. The lower this number, the better. Aim to have this percentage be 30 or lower.
However, make sure you are not opening new accounts at this time. Any new credit added to your credit report will account for 10% of your score. This includes not only charge cards but also vehicle loans, personal loans, student loans, and leases.
You will also want to keep any charge card account open. Many think that closing them will raise their credit. However, it is best to keep them open and active by just charging a small amount each month and then paying it off. This could be $10 in gas, a $5 sandwich, or paying a bill by credit card and then immediately paying it off.
To work on credit repair, it is best to turn to your credit report. You are entitled to a free report from all three of the major credit agencies each year. Look for any errors, and if there are any, dispute them. You may find it still states you have student loans active, or something else was mistakenly reported.
Credit repair can take as little as six months to start working. However, if you do not have any credit built up at all, it could take a bit longer. Just keep working to build up your credit, and within a year or two, you can have a credit score to be proud of.
If you are looking into credit repair in the Clear water, FL, area, consider contacting Super Credit Repair. They can help you raise and maintain a higher credit score so you can purchase a house to make into your home.