6 Easy Ways to Fix Your Credit Score
01/07/2022
What is considered a low credit score? A credit score is based on a wide range of financial information, including payment history, credit card balances, and length of credit history. Annoyingly, there are several different score models – and each one can pop out a separate score for various reasons. For example, a low credit score on the FICO scale is 579 or lower; however, on the VantageScore 3.0 scale, it's 500 or lower.
If your credit score is less than ideal, you might be at a loss for options when it comes to saving money, applying for loans, and finding rental housing. But have hope! You can take several actions right now to get back on track.
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Talk to an Expert
The best place to start is by talking to an expert about your situation. This consultation will give you a grip on where you’re at and make a plan for where you want to go - with a professional there to guide you the entire way. Once you and your expert have determined a clear pathway forward, start implementing the next steps.
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Review your credit reports
Ignorance isn't bliss when it comes to your credit! Pull a copy of your credit report from Equifax, Experian, and TransUnion to review what is working for and against you. Once a year, you can get a free credit report from the official AnnualCreditReports.com website. Start there.
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Start paying all bills on time (If you’re not already!)
Over 90% of lenders look at FICO credit scores – and the factor with the most significant impact on that score is payment history, among other things. Watch this quick video on payment history to see why paying bills on time is so important.
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Pay down your debt
If you can, pay your credit card balances in full every month. But if that's unrealistic for you – try to keep your balance at 30% or less of your total limit. There are other ways to help decrease your debt and quickly boost your credit score – watch this video on credit score capacity to see all your options.
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Keep Old Accounts Open – don’t close them!
So, you've gotten a balance down to zero, and you never use that credit card anymore - don't close the account! Keeping old accounts open helps your credit mix and improves your score.
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Consider Consolidating your Debt
Debt consolidation is a great step to take if you have a number of outstanding debts. A debt consolidation loan will give you just one payment to deal with and maybe give you the chance to pay it off faster. Talk to an Atlantic Lending Specialist at 800.834.0432 or on our website to see if it’s right for you.
Having a lower credit score can be frustrating and isolating but taking the first step in boosting your score is simple. If you're still unsure about what to do, call us – we can help provide you with a plan and peace of mind. Don't let a credit score stand in the way of a better future for you and your family.