Nasty surprises, especially to do with your personal finances, are never fun. Many people have checked their credit score only to realize it’s much lower than expected. Naturally, you ask, “What went wrong?”
Here are 5 reasons responsible people, like yourself, have a low credit score — and how to fix it.
Your cards carry a high balance every month (even when you pay it off)
What? You get consistently get close to your credit limit.
Why? 30% of your credit score is determined your “credit utilization ratio”. That is, how much credit you’ve used compared with your total credit limit. Getting too close to your limit indicates you’re a credit risk.
The Fix? Make multiple payments throughout the month to keep your utilization below 20% or apply for a credit card with a higher limit so you can spend more. Poor credit can impact your ability to get a new card so a credit repair agency can help to quickly raise your credit score to the needed threshold.
You constantly apply for new credit cards
What? You apply for lots of credit cards recently.
Why? Every credit card or loan application costs you points from your score. Many applications over a short time increase the credit hit because too many applications indicate a higher credit risk.
The Fix? Be careful about which cards you apply for. The best rule is to only apply if you really need more credit. Getting a new card without a good credit score can be difficult. In this situation, a credit repair company can help you quickly improve your credit score.
You have an outstanding collection notice
What? 35% of your credit score is made up by your Payment history. Often people don’t know they’re in collection, especially with medical debts where there is confusion about why is expected to pay.
Why? Being is collection has a large negative impact on your credit score as it indicates an inability to pay your debts in a timely fashion.
The Fix? Get a credit report which will indicate if you have any collections on your report. There are many companies that offer free credit reports and consultations.
There’s an error on your credit report
What? Something is on your credit report that shouldn’t be.
Why? 8 in 10 Americans have an error on their credit report. This can range from a simple clerical error to debts that have been paid off but not properly recorded.
The Fix? The easiest fix is to talk to a credit repair agency. These companies are experts at working with credit bureaus to spot and repair obvious errors You can do it yourself but it is a confusing and time consuming process.
You just recently got your first credit card or loan
What? Having a new credit card or loan can negatively impact your credit score.
Why? 15% of your credit score is based on the length of your credit history.
The Fix? Wait. Only time will improve this aspect of your credit score.
When you’re ready to get your credit report summary, call the number below. You’ll get the summary and consultation free of charge, without an obligation to purchase anything.
Want more tips and tricks on how you can repair your credit? Check out our credit repair website.
The information on this page is not intended to be legal advice. Our participating providers will offer an individualized consultation to determine the right services and products for you, if any.
Sign-up to receive your complimentary credit report summary, and credit consultation from our participating providers. There is no risk or obligation. You are not required to make a purchase. Take advantage of this opportunity to hear what a team of credit agents can do to help you.