Best Credit Repair Solutions By Atlanta Credit
Procuring a considerable credit score can allow you to qualify for a mortgage on a lower interest rate and better overall loan terms. An unhealthy credit score, on the other hand, can immensely affect your loan approval process. Just remember the best time to learn how to fix a credit score is now so that when you need a loan or credit approval, your score is already in place.
The credit system in the US is far from perfect due to which millions of customers have credit scores that make them seem way perilous than they actually are. Therefore, it is suggested that you not only look for ways to improve your score but instead search for everything in your credit report that needs fixing. Hence, fixing what is broken and then moving forward to improve your score is the right thing to do.
The first step for fixing credit score is by relying on a quality credit company like Atlanta Credit. Atlanta credit’s guide will take you through all the steps and options to fix your credit. They will thoroughly explain ways to improve your credit score and remove any harmful errors from your credit report.
Apart from hiring professional help, you can follow several other steps to improve and repair your credit over time.
Steps to Improve Your Credit Scores
Begin the procedure by checking your credit scores online. When you get hold of your credit scores, you will understand which factors are affecting your scores the most. This information will help you understand where you should begin or which area needs your immediate attention. The process will not come in handy immediately; instead, it will need some time to be reported by your creditors and will then subsequently reflect on your credit scores.
Laying focus on credit nitty-gritty will help enormously improve your credit scores. Just remember that your credit score will not improve overnight; instead, it will ameliorate gradually with time. Pay the older arrears and then focus on the newer problems.
Pay all Bills on Time
The primary reason lenders review your credit report and request a credit score is to check your reliability quotient. They are interested in knowing how reliably you pay your bills where your past performance becomes your future predictor. Therefore to positively influence your credit scoring factors, pay all your bills on the agreed time every month. Late payment and settling an account less than the agreed payment can negatively affect your credit scores.
When we say bill payment, we are not limiting it to just credit card bills or any loans (auto loans or student loans) and includes your rent and other utilities such as phone bills and so on. If you have lagging payments, pay or sort them as soon as possible. These late or missed payments might negatively affect (maximum for seven years), but their impact seems to decline with time. Just understand old arrears have less effect than the more recent ones.
Credit Utilization Ratio
The credit utilization ratio is the most important number in the entire credit score calculation. You can very simply calculate it by adding your credit card balances and then dividing the calculated amount by the total credit limit. For instance, if your monthly charge is about $2,000 and the total credit limit ( for all your cards) is $10,000, then your utilization ratio is 20%.
Similarly, to calculate your average credit utilization ratio, note all your credit card statements for the last 12 months. Then add the statement balances of each month (across all your cards) and divide it by 12, and you will successfully obtain your utilization ratio.
Typically lenders consider customers with ratios of 30% or less worthy for loan approval. Having a low credit utilization ratio also ensures the lenders that the customer hasn’t ever maxed out their credit card limits and knows how to manage the credit well.
To positively influence your credit utilization ratio, you can: first pay off debt and keep the credit card balances low. Second, you can become an authorized user of someone else’s account (only if they use their credit responsibly).
Open New Credit Accounts Only as Needed
The biggest misconception that customers hold is that it is better to have multiple accounts as the credit can be distributed from one account to another. This is bizarre as having different accounts just to have a better credit mix; doesn’t improve your credit score. Instead, unnecessary credit harms your credit score. You will end up creating too many hard inquiries on your credit report and overspending that will result in accumulated debt. Therefore, refrain from opening or applying for credit cards.
Don’t Close Unused Credit Cards
If you have unused credit cards open, don’t close them as long as the company doesn’t charge you any annual fees. This has proven to be a sensible strategy as shutting down an account can increase your credit utilization ratio. Owing a considerable amount and having fewer open accounts will result in lower credit scores.
Dispute Any Inaccuracies on Your Credit Reports
Regularly check your credit reports on all affiliated credit reporting bureaus (such as TransUnion, Equifax) for inaccuracies because any incorrect information on your credit reports can drag your scores down and harm you inevitably.
So, keep the tabs of accounts that are listed on your reports and verify their accuracy. If in the process you spot an error, dispute the claim and immediately get it rectified. It is better to regularly monitor your credit report than coming across an error after the damage has mended its way.
Even after following all these steps, your credit score doesn’t improve, or if you are in a need of immediate credit, contact Atlanta Credit. The company is best known for its credit repair solutions and will provide immediate rectification alternatives. Contact the professionals at Atlanta Credit by simply calling them at +1 404 940 2166. You can email them all your queries at firstname.lastname@example.org. Atlanta Credit is situated at 3355 Lenox Rd NE, Atlanta, GA 30326.
They offer the fastest application processing, easy documentation, and top-notch customer service. Furthermore, the company also provides home loans, personal funding, and business loans (for both small and large organizations), and credit consultancy services for businesses.