5 Quick and Easy Steps To Better Credit Having a loan denied due to having bad credit can be embarrassing. Unfortunately, for many people with poor credit, the dream of home ownership maybe out of reach. Even renting an apartment or home in the best neighborhood, in the best school system maybe out of reach because of a low credit score. One of the biggest killers to a consumers credit score outside of unexpected medical bills are late payments. Each time you are late you not only loose points off your score, but you will be subject to excessive late payment fees, and some credit cards will even increase your interest rate! The worse part about late payments is that with a little organization, they are 100% avoidable! Most banks ENCOURAGE you to make use of their bill payment system by offering free checking accounts when you opt for automatic deposit and bill pay. Even if its just the minimum amount, you should make it a priority to make at least the minimum payment on time. You can always send more money later on in the month, if you have it. Making on time payments will help you not only save your credit score, but help you save money! But what can you do to further help improve your credit score? Here are a few tips! 1. Get your credit report.
Check it for errors and dispute any inaccurate information
2. Make a list of your biggest debts. Its time to make a budget! Focus on paying off high interest credit cards. And once you have paid them off. PUT THEM AWAY! Use only in an EXTREME emergency. 3. Pay down your debts. Try not to use your credit cards until you have brought your credit utilization across ALL your credit cards down to less than 35%. Lenders LOVE seeing that you do not have a lot of credit card debt. Not only will bringing your credit utilization down below 35% increase your credit score, but it will also increase your chances of getting approved for a new loan or line of credit! 4. Add a new trade line to your credit report. Sometimes due to past money problems your payment history looks very poor. But if you are now in the position to pay things on time, why not consider getting a new line of credit? I’m sure you are thinking that's easier said then done. But if you open up a secured credit card, you will not only be building a saving account, but building credit at the same time. This new line will look like a regular credit card on your credit report and you can show that you are now able to make on time payments with this card. A nice clean trade line, with on time payments, will help prospective lenders take a chance on you! 5. Be smart about where you apply for credit. If you have a low credit score, you shouldn’t be applying for any types of credit cards or loans that require good to excellent credit. Read the terms and conditions before you apply for anything! Having trouble finding bad credit loans? Visit this site to learn a few tricks on how to find the best bad credit loans.