Credit Score Makeover Tips

Why having a bad credit score is not so pretty. It can effect a lot of different parts of your life.

Denied Credit and Loan Applications

Traditional lenders take some risk when approving credit, but your credit score is too low, they might not want to lend to you at all.

Can’t Get approved for an Apartment

As part of the approval process of renting an apartment or home, landlords normally check your credit. A low credit score my result in denial or asking for a higher security deposit.

Forced to Pay A Deposit for Utilities

When the gas, water or electric company feels your credit score indicates a greater risk of your ability to pay, they may require you to push cash upfront for the the account via a security deposit.

Denied Cell Phone Contracts

Cell phone companies are extending a month of their service (e.g. credit) before they get paid. As a result most perform credit checks to reduce non-payments. If you have a low score, you may not be able to get cell phone service on contract.

Increased Insurance Costs

Insurance companies’ data leads them to believe there is a correlation between low credit scores and higher insurance claims. They check your credit score and charge higher premiums for lower scores.

Credit Score Not as Beautiful as You’d Like? Some Ways to Make It Better
Pay Bills on Time

Low credit score? Missed payments are the likely cause. Seize today and start creating a new credit score today by consistently paying on time.

Open A New Account

If possible, open an additional credit account. Having the now-larger available credit as a ratio over your debt will help to build up your credit score.

Manage New Loans Responsibly

If you receive a new credit card or an online installment loan, avoid using the credit simply to acquire more rotating debt or to build a level of debt that can’t be managed.

For Credit Reporting Flexibility, Consider Online Installment Loans

If you miss a payment for some reason, borrowing from short-term lenders, like an online installment loan through Jora Credit, won’t immediately be reported to a credit bureau.

Avoid Hard Credit Checks

There are two types of credit checks. Hard or soft inquiries. Hard inquiries are used by organizations when you are seeking new credit, like a credit card or mortgage. Soft inquiries don’t affect credit scores. Hard inquiries can, especially if there are a lot of them in a short time. When possible, reduce hard inquiries or deal with lenders that perform soft credit checks.

Get a Copy of Your Credit Report

It is possible errors are unfairly impacting your credit score. Use your free annual copy of your credit report to spot any errors that you want to correct and improve your score.

Keep a Low Credit Balance

The overall balance on your available credit is an important factor in your credit score. Try to keep yourself at 30 percent or under of your total credit limit at any given time.

Time Heals

Some dings on your credit score will stay on your record for up to seven years until they automatically drop off. Barring additional blemishes, your credit score will improve in time.