Posts Tagged ‘easy way to fix bad credit score’

An Easy Way To Fix Bad Credit Score

If you are looking out for an easy way to fix bad credit score, you will be glad to know there definitely are some simple ways available out there that can help you improve your credit situation significantly within a relatively very short period of time. Using a secured credit card is one of the most proven ways to repair credit. Just because your FICO score is quite low at this particular moment, it does not mean that it is always going to be like that. However, things will not improve until you start putting in some serious efforts toward the same. Though it is difficult for a person with bad or poor credit to obtain an unsecured credit card, such people can easily qualify for a secured credit card, that too, at a very low rate. This secured credit card can prove to be a great tool for you that will pave the path for you to strengthen your credit worthiness. Following is a brief rundown on how to use it in a way that should help you raise your FICO score within just a couple of months.

Obtain A Secured Credit Card

When it comes to using a secured credit card to fix bad credit score, obviously the first thing that you have to do is to obtain it. You might be wondering why any credit card company would issue you a credit card when you are already having a bad credit. It is very important for you to understand that a secured credit card works differently than an unsecured one. In order to qualify fro it, all you have to do is just to make a certain amount of money as advance deposit, which actually becomes the maximum limit for you on that card. You will not be able to spend more than what you already have deposited. Since there are no risks associated with this type of credit tool, lenders do not mind issuing it to you at a low rate as long as you are willing to make a decent amount of deposit.

Pay The Monthly Balances In Full

In order to fix bad credit score, you must pay off the balances on this card in full every month. Though credit card companies offer their customers the convenience to pay just a minimum amount of money every month and avoid the actual debt. You are strongly recommended not to use this continence because it will eventually make things worse for you. Instead of improving your credit score, you will actually end up damaging it furthermore if you make just the minimum payments.

Make Sure The Timely Payments Are Being Reported Promptly

It is good that you are making the full monthly payments in a timely manner but unless it is being reported promptly to the three major credit bureaus (TransUnion, Equifax, and Experian), you will not be able to achieve your goal. While you are using this strategy to fix bad credit score, you must do regular monitoring on whether your credit card company is reporting the accurate and complete information about the timely payments or not. If yes, you will see a significant rise in your FICO score within just a couple of months. You just have to be consistent and financially disciplined in your approach.

Though at this stage of time, where you are struggling with poor credit, it is often advised to use cash and avoid using a credit card. But if you use a secured credit card wisely, as explained above, it can really help you fix bad credit score and improve your credit worthiness.

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