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How to Fix Credit: Tips for Credit Experts

The average US credit rating is over 700, which means many Americans shouldn’t have an issue qualifying for a home loan, car loan, or a premium rewards card. However, a significant number are struggling with subprime scores. As a result, they don’t have access to the credit they need and maybe refused a mortgage on their dream home.

We recently spoke with credit referral company Finance Council to advise consumers in situations like this. Finance Council’s trusted partners have already helped over 500,000 Americans to improve their credit scores and their lives, and its experts were kind enough to offer some tips and strategies.

1. Contact the Experts

You don’t need a big budget to work with credit repair experts, and you definitely don’t need to be in a dire financial situation. At Finance Council, we refer consumers to the most affordable and suitable credit repair service, offering a 100% free no-hassle consultation. It’s available whether you’re struggling with a subprime score or just need a nudge in the right direction, and we promise to help you find the best service for your needs.

To work with Finance Council, just dial 1 (888) 479-1463 or visit the Finance Council website for more information.

It’s the easiest way to start your credit journey and it’s a service available to everyone.

2. Check your Credit Report

Mistakes can creep onto your credit report and reduce your score through no fault of your own.

Maybe a payment was incorrectly marked as being late, maybe there’s an account on there that you know nothing about, maybe you were the victim of fraud. In any case, these things can be fixed.

Check your credit score regularly, keep an eye out for errors, and report them. This is also something that Finance Council’s trusted partners can help with. In fact, it’s one of the first things they will do, ensuring you’re not paying for someone else’s mistakes.

3. Pay Overdue Balances

Just because an account is late, doesn’t mean the damage is already done and you can avoid it. It still needs to be paid, and the longer you leave it, the more damage it will do.

If it hasn’t been 30 days, the payment won’t be recorded as late. Only payments that exceed the 30-day timeframe will be reported as such, so you don’t need to panic if you’re just a few days late.

4. Pay Off Debt and Increase Limits

Your credit score is an advanced algorithm that includes several different factors. One of these, known as credit utilization, accounts for 30% of your total score. It considers how much debt you have compared to how much credit is available, and it’s best to keep this ratio as low as possible.

For example, if you have a $20,000 credit limit and a $10,000 debt, your score will be 50%, which is a little on the high side.

There are two ways you can improve your credit utilization ratio: clearing more of your debt and increasing your credit limits.

An increased credit card limit may seem counterintuitive, but in the above scenario, doubling your limit would drop your utilization ratio to 25%. That’s an extreme example, and it’s unlikely your creditors will be that generous, but every cent helps.

5. Don’t Cancel Your Credit Cards

After clearing their debts, many borrowers are eager to cancel their accounts, thus reducing temptation. But this can do more harm than good.

Imagine, for instance, that you have two credit cards:

  • Credit Card 1 = $10.000 Credit Limit with a $5.000 Debt
  • Credit Card 2 = $10.000 Credit Limit with a $5.000 Debt
  • Total = $20.000 Credit Limit with a $10.000 Debt
  • Credit Utilization Ratio = 50%

If you clear credit card 1, you’ll remove $5.000 of that debt and drop your ratio to 25%, but if you follow this by canceling the card, it will return to 50%:

  • Credit Card 1 = Cancelled
  • Credit Card 2 = $10.000 Credit Limit with a $5.000 Debt
  • Total = $10.000 Credit Limit with a $5.000 Debt
  • Credit Utilization Ratio = 50%

Of course, if that credit card is costing you hundreds of dollars a year and the temptation is too great, you may want to consider canceling it.

If you’re struggling to weigh up the pros and cons and find the best solution for your situation, contact Finance Council today.

Gaining financial freedom is easier than you thought!

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