A credit score is a number that reflects a consumer’s creditworthiness or how good the consumer is at paying back loans. People with credit scores of 700 or above can borrow money at a lower interest rate, and so pay less money when repaying the loan. Lenders, mortgage brokers, credit card companies, etc. carefully consider an individual’s credit score before deciding how much interest to charge them for loans, mortgages, and credit cards, etc. People with a credit score of 640 or below are charged higher interest rates, they are termed subprime borrowers.
Credit scores can determine the initial deposit an individual pays to buy a smartphone. People with bad credit try to improve their credit score so that they can apply for jobs, buy a car, get their utilities back on, rent an apartment, and improve their lifestyle – without paying higher interest rates to car dealerships, lenders, etc. If you’re looking for tips to boost your credit score, we recommend that you check out the following ones.
1. Get Your Credit Report
If you are looking for ways to repair your credit, to improve your financial position, the first step in credit repair is requesting your credit report from each of the three credit bureaus. Many people are unaware that they’ve made late payments or have debts to pay off. Credit reports play a big role in making you realize how much debt you need to pay off.
By federal law, you have the right to an accurate credit report. You can request a free annual credit report from each of the three credit bureaus Equifax, Experian, and TransUnion – but it won’t have your credit score on it. You’ll have to pay $10-$20 to obtain it from one of the credit bureaus.
2. Analyze the Credit Report
Back to the real thing: a credit report contains mistakes – that’s almost a given. It may contain derogatory marks – negative data that last for a long time (usually because the individual didn’t pay back a loan). A late payment or bankruptcy is also derogatory marks. It’s a good idea to go through your credit report with a fine-toothed comb.
According to the Fair Credit Reporting Act, credit bureaus can’t report data that are unverifiable, incomplete, or inaccurate. You can dispute incorrect data and get them removed from your report. Omega Star can help you remove certain derogatory marks off your credit report. Please note that we cannot help remove recent foreclosures or bankruptcy off it.
You should also check your credit report for derogatory marks that are over seven years old. Notify the credit bureaus and request that they remove all data past the reporting date. Note that bankruptcy will, unfortunately, stay on your report for ten years. Remember that the free credit reports you’ve obtained a list of critical information used to form your credit score.
3. Obtain Your Credit Score
As mentioned earlier, credit reports do not have your scores on them. This is why you will have to get in touch with some other reliable platforms that can provide you with your credit scores, generally free of charge. There are over 200 financial institutions – including different credit cards and personal funding companies – that offer free FICO Scores. Your FICO Score is considered a summary of your credit report, as it is based on the information on your credit report.
So what affects your credit score? The three credit bureaus mainly take payment history (35%), total debt (30%), and length of credit history (15%), new credit (10%), and types of credit (10%) into account.
4. Dispute Incorrect Data
If, for example, your credit report shows late payments on it when in fact you paid on time, you can raise a dispute regarding the incorrect data with all three credit bureaus.
Here’s how we recommend that you dispute negative items on your credit report.
- Do not send all your disputes at one go.
- Don’t dispute frivolous items on your credit report?
- Check for debts on the report that don’t belong to you.
- Do keep a paper trail of your communication with the credit bureaus by sending in your objection(s) and proof through registered mail and their replies to your objections. They need to respond to your objections within 30 days (45 days if you’ve sent in additional proof), otherwise you can sue them for up to $1000 in federal court. After completing the investigation, if the dispute has resulted in a change in your credit score, the credit bureau will send you a free copy of your credit report. You can ask them to send correction notices to all companies that have accessed your credit report in the past six months.
Financial specialists can let you know diverse strategies on how you can improve your credit score and in a short period of time. Omega Star offers such help.
5. Other Ways to Improve Your Credit Score
If you are searching for other ways to improve your credit, there are many companies that offer credit repair services. Omega Star is one of them. Here are more tips you can implement to improve your credit score.
Personal payment history – Your personal payment history is one of the most crucial factors when it comes to evaluating your credit score. If and when you’ve failed to make some payments on time, try to correct this and pay on a consistent basis – and on time.
Reduce higher interest balances – You should also focus on reducing higher interest balances because they affect your credit score more than others. You can also authorize your bank to autopay certain companies. This way those bills will get paid automatically as they become due.
Don’t close credit cards – If you want to close some credit cards, remember that this will lower your credit score? A better solution is to keep those credit cards and check the contact information and balance on each every now and then. Keep them, but don’t use them.
Become an authorized credit card user – Becoming an authorized credit card user on someone else’s credit card helps improve your credit score quickly. The good thing is that the authorized users’ credit score will not affect that of the main user.
Putting all these tips into practice will improve your score over time and consequently help repair your credit.
6. Find Professional Help
There are companies that offer to scrutinize your credit report for you, find the errors, and ask the credit bureaus to correct it and re-evaluate your credit score. Omega Star offers this service, as well as personal funding. Personal funding means getting loans with bad credit. Banks will not loan a large sum to individuals with low credit scores; however, personal funding companies will.
Personal funding helps people obtain multiple loans and credit lines. Non collateral loans, most of the time, are limited to $50,000 even if you have a good credit score. Omega Star can get you up to $250,000 so potentially you can get five times more money than you normally would with the same qualifications and documentation.