If you have a bad credit card score, it’s going to affect you in many ways; most especially, you won’t qualify to get loans/financial help from lenders.
There are many factors that can cause you to obtain a bad credit score. However, this article will elaborate on how to repair credit cards and fix your bad credit score.
Reliable advice for repairing credit cards
When you search the Internet, you will find lots of tips on how to fix different credit problems; however, it is difficult to pick out the best advice that would work for your problems. Hence, this is going to be a concise article, yet detailing enough to help you out of that credit card mess.
Examine your credit report
The first step to repairing a credit card is by accessing your credit situation includes checking your credit score using online tools; there are quite a couple of online tools that allow you to check your credit score for free. In contrast, you only have access to a free credit report once within a 12-month window. If you haven’t used the free opportunity, apply for a credit report.
Credit scores and more. It’s all on Credit Karma.
Why are you checking your credit report?
When you obtain the credit report, carefully go through the document and check for possible miscomputations. If you discover any error, open a dispute and make sure the error is fixed as soon as possible. This is one of the most natural ways to repair/fix your credit card.
Don’t default on loans anymore or make late bill payments
Missing the deadline for credit bill payments will certainly affect your card’s score. If possible, try to pay down your bills at least two times in a month rather than paying once. You also need to set up reminders to notify you of different bill payments you need to make. This way, you’ll gradually improve your credit score; however, it may take up to 7 years or more before your credit report will be free from bad reports.
Some people consider debt consolidation, and this is not a piece of bad advice. You can take up one loan and clear off your little debts, and then focus on paying back just the loan, without having other small bills here and there. Remember, when you have many pending debts is one of the most significant factors behind a bad credit score.
Keep your card balance low (credit utilization)
Having more than one card is stressful, but you have to keep your balances low, regardless. You should know about credit utilization – it is the ratio of your overall credit card debt to your credit limits – and it plays a vital role in determining your credit score.
Let’s look at a practical example. You have a credit card with a $5,000 limit, but left with a balance of $1,100 on the same card – the $1,100 is your debt; hence, your credit utilization for that card is 22%, which is below 30% and this is good for your card.
Build new credit
Sometimes, rebuilding credit is a great way to improve your score. Building new credit accounts may be a bit stressful, but worth the try. You can start by applying for secure cards – yes, you may have a bad credit card score, but you can apply and get a secure credit card.
Furthermore, you may consider going for credit builder loans; such loans can help you rebuild your credit. What more?
While all these tips will surely help to improve your credit score, the most natural way to repair your credit is to wait for 7 – 10 years. The negative entries on your credit report will disappear with time and that between 7 – 10 years, once the negative entries are deleted, your score will improve. However, while waiting for that number of years, you should maintain the tips discussed above.
A smarter way to find financial products. Compare personalized offers for credit cards, loans and more without hurting your scores. It’s all on Credit Karma.
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