Improving your credit requires knowledge of the situation you are in. During a credit repair consultation, your advisor may discover any of the following common issues. We will discuss these to help in cases where you may be asking, “How do I fix my credit?”
Lack of Credit History
Your credit history is essentially a record of your credit activity, maintained by the three credit reporting agencies. One in ten adults don’t have a credit history. This is similar to having negative marks on your credit report and may be referred to as “credit invisibility” or “thin” credit. Your credit history may be so lacking you may not even have a credit score; in that case, a potential lender or landlord has no information to judge your responsibility or creditworthiness.
But you can build your credit history by applying for secured credit cards. Also, cards from retail stores or credit builder loans can help. You can improve your credit by making payments on time and by not overusing your lines of credit.
If you forget to make credit card payments, you may be in need of credit repair services. Your account won’t be reported as delinquent unless your payment is more than 30 days late; but by then, it stays on your credit report for seven years! Missing a payment can also drop your credit score by up to 100 points.
Getting caught up on your account, keeping balances low, and making sure you pay other accounts on time can help. You can also set reminders on your phone or set up automatic payments from your bank account.
Having a lot of late payments on your credit report can cause long-term damage to your credit. It can take several years of on time payments to improve bad credit. Your credit score will improve if you pay on time consistently. But a record of each late payment can remain on your credit report for up to seven years. At that point, with the negative record removed, and a habit of making on time payments, you can have a more favorable credit score.
Victim of Identity Theft
Fraud is a major concern for every credit holder in the U.S. and affects millions of people every year. The use of your name, date of birth, or Social Security number and using your credit without your authority can be very damaging. Criminals can use your identity to make expensive purchases and carry out all kinds of malicious acts.
To protect yourself, check your credit report for inaccurate or suspicious information; if something looks wrong, contact your creditor or a reporting bureau and put a freeze on your credit.
Closing Old Credit Card Accounts
The older a credit card account is, the more of your credit history someone such as a mortgage lender can see. Keep all credit cards open, even those you pay off. Closing out accounts reduces your available credit and eliminates account histories that can show your financial responsibility.
Contact American Credit
If you have one or more of these credit issues, you might be looking for credit restoration near you. Our methodology is different from other credit companies, in that we skip the dispute resolution process and go right for pre-litigation to achieve more successful outcomes. We can help improve your credit and raise your credit score, as we’ve done for thousands of clients. Continue browsing to learn more about how our credit repair process works, and call 855-213-1043 today to schedule your free credit repair consultation.