You will find top 5 common ways to bad credit fixes (to fix your bad credit).
Although a lot of people might not exactly be aware of them, these tips are not a new tip and have been around for a long time. These are the top 5 bad credit fixes to help you improve your financial condition:
- Pay on Time
- Increase Available Credit
- Choose one credit card to focus on.
- Choose one thing you can live without.
- Stop using credit.
Make credit card payments on time
There are numerous lenders (mortgage or a credit card company) that want to access your credit history prior to making a financial decision. A category that always gets a spotlight is your payment history, because they want to know how responsible you are with the payments and making an effort to do them on time.
The positive aspect is if you have missed a payment occasionally it is not a big deal, but if you miss them a few times in a row it is not a good sign. It is like you are late for a full week in school. You are in trouble. However, if you were late once every 2 months in a class, you won’t get a problem. Same analogy for how discipline you are in paying credits.
When you miss a payment the credit card companies will put their attention to you, and some issues will come. First, the credit card will attach a late payment cost and in sometimes they give you a penalty rate. Obviously there’s a whole lot occurring if you missed a payment and it just makes your life harder. They add insult to injury with penalty costs. You also become subject to universal default where another company can penalize you for missing a payment on a completely different card. This isn’t a bad choice and only the witnesses find out the situation, everyone finds out.
Increase your available credit
Your main goals are fix your credit score and get out of debt as quickly as you can. You can start working this out by increasing your available credit. The quantity of available credit is the reason why a lot of people have bad credit scores.
They actually have used up more than 70% of the available credit their card has. This decreases your credit score so much since it shows the credit card companies that you don’t have sufficient cash and you need to count solely on your credit card.
So, if you pay your balance and increase the available credit, you send another good message to credit card companies.
Your available credit increases by paying the balance down and the credit card companies usually will lengthen your line of credit while you’re paying off your balance and how long you have had the credit line.
Pick 1 credit card to focus on
It happens regularly; people get so motivated and do many radical things that aren’t helpful over time. For instance, you want to lose weight and hit the gym for 2 hours in the first 2 days, but the next day you are exhausted and stop working out altogether.
This is the same with paying off credit cards. When people get extra cash, they make payments on 3 different credit cards instead of one. Although they decrease the balance on most of the card they have, at the end of the day they still have 3 cards waiting to be paid instead of 2 if they concentrate to one at a time.
Pick 1 thing you can give live without
Getting away from debt needs sacrifice and wasting no money!
Many people need to keep up with the latest styles and it will push them deeper into the debt. For instance; you personally have done it too, and buy yourself an iPhone 6s plus. You were buying a new iPhone to replace your actually working great iPhone and then you realized that the absence of just one iPhone is not going to destroy your life.
Even any smart phones can play all the games you play on iPhone, opening the same apps, and contacting the same person, so why waste your money on buying a new iPhone every time they release a new one? If you have debt, that’s your main priority, not style and prestige.
Stop using credit cards at all
Another example; I successfully increased my credit score a couple years ago just by stop using my credit cards for two or three months. Additionally, the interest on credit cards is so ridiculous no matter how low it is. We all complain every time about taxes anything we bought, well credit card interests rates are slightly higher than taxes. Plus, if you cannot pay off the entire balances by the end of the periods your balance will be doubled.
If you are going to use the methods listed above, they will certainly help you to improve your credit score. Paying on Time, increase Available Credit, pick one card to focus on, throw one thing you can live without and stop using credit cards are the most common ways to fix bad credit.