A score represents a moment in time and can change based on your behaviour.
Missed or late payments or lots of “maxed out” credit accounts will lower your score.
The best way to increase your score is to pay back debts on time and consistently. Which means, of course, you need to first have some debt to repay.
Scores typically range from 400 to 900; Good scores are typically 650 and higher; Anything over 750 is considered excellent.
Whether it’s 750 or 850 doesn’t really make a difference. For an institution like a bank or credit union that’s examining your credit, anything over 700 is “a no-brainer.” Because the makeup of your credit files is a bit different, your scores will also be different.
Get a credit card – and use it wisely – in order to establish a good credit history. We live in a country where you can’t do much without having credit, and if you’re being responsible about it and not overextending yourself, then it’s always a good thing to have.
Credit scores are only one of several tools that credit agencies use to determine your credit-worthiness. Your score is a check on your character. In this day and age, when we often can’t meet face-to-face, how do we determine someone’s character? We do it through looking at their past history, to see how they’ve re-paid debt.
You need at least two open and active credit files to establish a credit rating. As long as you’re being responsible and not overextending yourself.
On the other hand, if you’ve done the opposite of this, “meaning” you have had hardship and certain circumstances have gotten in the way of your finances- its ok life happens, but it doesn’t end there. You have rights, according to the Fair Credit Reporting Act. You have the right to tell a collection agency to stop harassing and calling you. The right to dispute a debt, claim or items that appears on your credit file is also yours.
If you are suffering because life’s s circumstances are the cause of your bad credit and low credit score, there are several ways that you can deal with your situation. The two that are best to avoid however are consumer proposals, and bankruptcy. These are the two options that can hurt you the most, and yet these are the two options most credit repair companies will offer you as your best solutions.
A consumer Proposal will cost you more than you expected to pay, you’ll be signing documents you don’t even understand and which will hurt you in the long run. It also stays on your credit report for 7 plus years and will prevent you from qualifying for your car loan, mortgage, a line of credit or a simple rental lease. It will even harm you from getting suitable employment.
As for bankruptcies, these stay on your credit report for 10 plus years and pretty much acts the same as a consumer proposal. There are several more effective and faster ways that you can resolve your debt and other issues that are on your credit report. For example, Minimal settlements can be negotiated and arranged, and with certain techniques your credit report can be new again with an increased credit score and derogatory comments removed. You can be on your way to financial recovery. Talk to the right credit expert that deals with credit repair, they have the knowledge and experience. Consultations should be free from a credit analysis that specializes in cleaning your credit, they should be able to guide you, and help in re-building your credit.
Bad credit is not a crime, it’s a situation which is forgivable.