All You Need to About Bad Credit Score

If your loan or credit card application was turned down due to a low credit score, you are aware of what this means. A bad credit score shows you could not pay the installments on time or have been dishonest with the financial institutions. Your financial management and the timely repayment of all loans and credit cards together make up your credit score.

bad credit score


A bad score can land you in problems and will prove to be the biggest hurdle for helping you in getting rid of the issues related to your finances. If you are planning to take a loan then your credit score will act like a mirror that shows will you be able to return the money or not. If a person has utilized a credit card or loan and has made on-time monthly payments toward their EMIs and credit card bills, they are said to have a good credit history.

How can you increase or improve your credit score? 

Although it won't happen overnight, one can raise their credit score in 30 days. Bad credit does not spell doom. The following techniques can be used to raise one's score.

Repaying previous debt

You must settle any accounts that have been settled, where you have only paid a portion of your debt, or written off, where you have not paid any of your debt, but the bank has deemed them to be bad debts and reported them to the credit agency. Your credit score will increase if you take this action.

Take out quick loans.

Although the interest rates on these loans may be hefty, it is one of the quickest ways to raise your credit score. This technique is helpful for persons who want to quickly raise their credit score, say from 700 to 800, to qualify for a better loan with a larger amount. People with credit scores below 650 have an extremely tough time qualifying for an unsecured loan.

Conclusion

Suppose you choose to use one of these strategies to raise your credit score, keep in mind that it will take some time for the changes to show up in your score because it takes time for the lender to update the credit bureau. Wait 15 more days before requesting your credit report to verify your score if it hasn't grown in a month. Else you can also get in touch with the team of Houston Owner Financing, and we will help you improve your score. 






Location: Parking lot, 2400 Augusta Dr # 460, Houston, TX 77057, USA

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