These 4 Things Can Help Get Your Credit Back On Track
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Everyone knows credit scores are important, but past mistakes can often mean carrying around a less than ideal number. Although many people believe it's impossible to recover from a low score, that simply isn't the case. Here are four ways to improve your credit score.
1. Monitor your credit.
Maintaining a healthy credit score means keeping tabs on that magical number at all times. A great way to do this is through Credit Sesame, which offers consumers like you a completely free credit monitoring service. All you have to do is head to the website, create an account, and let the company do the rest.
All of your information will be updated by Credit Sesame each month, along with a breakdown of your credit accounts. You'll be able to see your debts, payments, interest rates, and credit utilization ratios in one place. It's an easy and convenient way to make sense of your personal finances.
You'll also receive real-time alerts anytime something changes on your TransUnion credit report. This is a great way to insure that you're notified in the case of fraudulent activity, allowing you to take action right away if your card has gotten into the wrong hands. It can also allow you to catch and correct any errors on your report. This is particularly valuable considering millions of Americans have mistakes on their reports.
Sign up for Credit Sesame's free credit monitoring service.
2. Build your credit.
Everyone begins their credit journey at the same place – with no credit at all. Building credit is seen as a major priority for most consumers (and rightly so), but most people are misinformed about what is required to achieve a stellar score. While some set out to build a healthy score by spending money on credit cards, others take a more sensible approach.
Self Lender allows people just like you to open a credit builder account – a small loan held in a CD account for a year. For the most popular flagship account, the company lends you $1,100. You make payments of $89 into your CD account each month, and Self Lender shares your payment history with the three major credit bureaus. This is important because payment history accounts for the majority (35%) of your credit score.
When it's time to cash out your CD, you've built credit history and you get $1,000 back. It's a pretty sweet deal when you compare it to the alternative of carrying around credit card debt and paying high interest rates. And the best part is that you only need $12 to start, which pays for Self Lender's administrative fee.
Self Lender isn't just a smarter way of building credit – it's also effective. Customers who pay into their accounts on time (while also meeting their other financial obligations) see an average score increase of 40 points in six months for the flagship account.
Start building better credit with Self Lender today by clicking here.
3. Repair your credit.
Your credit probably isn't perfect. Maybe it's even found its way into the ‘bad' category (generally believed to be 560 or under). That's okay. You can recover by using a service that has been helping people raise their scores for over 27 years.
That service is Lexington Law. They offer every potential client a free consultation, giving you – and your credit score – personalized attention. Once they've analyzed your situation, they come up with a plan to help get your score back on track. This often involves asking creditors to remove old negative marks from your credit report, as well as disputing the validity of certain items.
Lexington Law has a proven track record, helping clients get inaccurate, obsolete, and unverifiable items removed from their credit reports. The year 2016 saw the company collectively get nine million negative items removed from reports. Many of those related to late payments, liens, bankruptcies, foreclosures, and repossessions.
If you choose to go ahead after your free consultation, you'll be able to pick from a number of plan options beginning at $89.95 a month. You'll also be able to keep tabs on all the great things Lexington Law is doing by tracking your progress online.
Contact Lexington Law for your free consultation.
4. Reduce your credit card bills.
If you carry around revolving credit card balances on various cards, it can seem impossible to get ahead. This is because you're likely paying extremely high interest rates, meaning very little of your monthly payments actually go towards paying off the principal balances.
One of the best ways to combat that problem is to take out a personal loan which you can use to pay off your credit card debts. These typically offer lower interest rates than credit cards, making them an incredibly smart alternative. Personal loans also allow you to consolidate your debts into a single monthly payment, which is a convenient perk.
Upstart is a great choice when it comes to personal loans, offering consumers amounts ranging from $1,000 to $50,000. If you're like most of the lender's customers, you'll save an average of 25% compared to your credit card rates. That's huge.
Borrowers need a minimum FICO score of 620, although applications with an insufficient credit history can also be accepted by Upstart. The lender will also look at factors such as your education and job history. The duration of your loan can be three or five years, but there's no penalty if you pay it off early.
If you're curious about Upstart, you can head to the website, enter your information, and see what kind of rate you can receive. All of this is done in just two minutes, without negatively affecting your credit score. If you decide to apply and are approved for a loan, you'll receive your money the very next day.
Payoff is another great option when it comes to personal loans, offering amounts between $5,000 and $35,000. The lender is dedicated to helping you achieve your goals, describing itself as a “financial wellness company” which employs “member advocates” to support you along the way.
Loan durations range from two to five years, with no pre-payment penalty. Borrowers need a credit score of 640 or above, a debt-to-income ratio of 50% or less, and three years of good credit.
You can check your rate on Payoff's website in just three minutes, without impacting your credit score. Once you're approved, your funds will be electronically deposited into your bank account. A great thing about Payoff is that they've eliminated late fees, so you're allowed to slip-up from time to time without being penalized (just don't make a habit of it).
Interested in what Payoff can offer you? Click here to find out.