Taking out a loan is often necessary in order to make a big purchase, but qualifying for a loan becomes difficult if you have a bad credit score. Lenders use credit scores to determine the risk associated with the borrower. A bad credit score tells lenders that you’re not financially responsible and that you may not pay your loan back on time – or at all. A low score can also affect the terms of a loan. A bad credit score is generally considered to be around 550, while 750 is considered an excellent credit score.
The following are the steps that you’ll need to take in order to improve your bad credit to excellent credit within 12 months:
One thing that will hurt your credit score is not paying your bills on time (or not paying them at all). By placing your monthly bills on automatic payment, you’ll ensure that you’ll never be late.
Get a copy of your credit report and make a list of all the debts that you have. The order in which you pay down your debts is important. In fact, if you pay down the wrong debts, or you pay your debts down in the wrong order, it could actually hurt your credit score. Here are some tips for paying down your debts:
If you have bad credit, then use these steps in order to improve your credit by as much as 200 points within one year. For additional advice on improving your credit, visit us at Boost My Score today. Let us help you add positive history to your credit report through piggybacking credit tradelines!