Life happens to everyone. Sometimes, those happenstances spill over into your finances causing chaos. A death in the family, divorce, loss of income, personal injury, home repair, or other unexpected expense could result in the downfall of your credit status – which is a battle to repair. As your credit can often impact your ability to buy a house, car, finance an expensive service, and in some cases, get a job, waiting 7 to 10 years for things to improve is out of the question. Fortunately, there are things you can do to get back on track faster.
Only Spend on Necessary Things
It’s crunch time and this means crunching budget numbers. Review your current budget and spending habits to see where you can cut back. The idea is to find as much free cash as you can to pay down your debts faster and boost your credit status. This may mean cutting back on eating out or shopping. It could even mean comparison shopping on services and products you frequently purchase to see if there are more affordable options.
Get Your Credit Utilization Ratio Down
Approximately 30% of your credit score is calculated by the balances owed. More than that, your credit utilization ratio is the amount of money you owe compared to the amount of credit you have. To boost your credit score fast, you don’t have to pay everything down to zero, but need to get your balances below 30% of your total credit limit. You can consider financial resources like installment loans for bad credit to get those balances down. Lenders may not need to look at your credit score to qualif
Clean Up Your Credit Report
You’d be surprised to find out how many negative accounts and inaccuracies could be reported on your credit history that you know nothing about. As negative and closed accounts should be removed after 7 to 10 years and inaccuracies don’t belong on the report, to begin with, having them removed from your account can make a significant difference in your credit status. You can work with a credit repair company or do it yourself by contacting the three major credit bureaus to dispute the accounts.
Negotiate Negative Accounts
If the remaining accounts on your credit report are legit but are still impacting your credit status, you can still do something about it. Contact the creditors and find out if you can negotiate new repayment terms. As most just want to be paid, they are inclined to offer you options despite your circumstances. This could result in a smaller balance, the reduction of fees and penalties, or a payment arrangement you can stick to.
It’s crazy how convenient a good credit status can be.Yet when faced with life challenges that set you back, recovering with bad credit is often hard to do. When you’re trying to do things like get a house, car, apply for a job, or purchase big-ticket items, waiting months or years for your credit to improve on its own won’t do. The above-mentioned solutions can help you resolve the matter faster so you can move onward and upward with your life.