There are a number of factors and scenarios that can negatively affect your credit score. Fortunately, even the most credit-damaging situations can be remedied. The following are four scenarios that can damage your credit score and what you can do to repair it:
Your credit utilization ratio has a big impact on your credit score. Basically, the credit utilization ratio is the balance of your credit cards compared to the amount of credit made available to you. If you’ve maxed out one or more credit cards, you should try to have your credit limit raised in order to lower your utilization ratio. You should also stop using your credit cards and begin paying them down as quickly as possible.
It will be next to impossible to qualify for a mortgage or any other loans if you don’t have any kind of established credit. To begin building good credit from nothing, apply for a credit card or two. Use the card, but pay it down when you do. Also, consider opening an installment loan to diversify the accounts on your credit report.
If you have an account in collections, it means that your lender doesn’t think you’re going to pay off your debt. It’s a sign that you’re not a reliable borrower. Make sure that this doesn’t happen again by creating a budget, paying your bills in full and on time, tracking your spending and only taking on payments that you can afford.
Being forced to file for bankruptcy or losing your home to foreclosure can cause a serious blemish on your credit report. This blemish could remain on your credit history for seven years or more. Not only will this hurt your credit score, it will make it difficult for you to obtain new credit. The following are three steps you’ll need to take to repair your damaged credit:
These are four scenarios that can seriously damage your credit score. Fortunately, you can repair this damage over time. If you don’t have time to wait, piggybacking tradelines is the solution you have been searching to improve your credit score. BoosMyScore has discovered a way to add positive history to your credit report that can drastically and immediately boost your credit score. For more information contact BoostMyScore.com and check out our tradeline inventory today.