San Antonio – If your invoice is delayed or skipped due to a pandemic, your credit score may have been hit. However, according to Consumer Reports, there is a way to build credit in the right way.
Credit scores affect so many things, including insurance premiums, mortgage rates, car loans, and much more. Therefore, millions of people with very low credit scores or no credit at all can face challenges.
“Poor credit history can make it difficult to rent an apartment, go to college, or get a job,” said Lisa Gil of Consumer Reports.
The catch is that you need to have credits in order to build credits. And if you already have bad credit, it’s hard to get credit.
Consumer Reports provides these ways to increase your credit score:
You probably open a bank account with a credit union and borrow some small loans. Make monthly payments on time, and it should improve your score over time.
Consider applying for a secure credit card. In other words, it is backed by cash deposits held by credit card companies. Use it to pay on time.
Another option is to ask a relative with good credit to add you to their credit card. This is not always a good idea as it can distort the relationship. Missing or late payments can reduce both credit scores.
Borrowers with unpaid debt in collection should pay it off as soon as possible and pay all invoices on time to avoid collection in the first place.
“When you pay off your collection’s debt, many credit scoring systems don’t weigh them when calculating your scores,” says Gill.
Please send a certificate with evidence to the three major credit offices, Experian, Equifax and Transunion, check your credit report and challenge any mistakes.
Experian allows consumers to opt into the Boost program. You can improve your score, albeit slightly, by paying utility bills, mobile phones, and even Netflix bills.
Consumer Reports warns that they are dissatisfied with credit repair services that promise paid quick fixes. You don’t have to pay to improve your credit, but it takes a solid financial plan and some time.
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