The Easiest Way to Improve Your Credit

Happy New Year!

I don’t know about you, but one of the New Year’s resolutions that I make each and every year is to improve my personal financial situation… be that to increase the amount of money in my savings account, pay off a few bills, or to improve my credit score so that I can buy that new car I’ve been thinking about.

What about you?  What are your financial goals for this year?

If you’re like a lot of people these days, you may have had a financial setback or two in the past few years that may have impacted your credit score, and in so doing, may have affected your buying power or even your ability to get that great new job you’ve been considering.

Do you know your credit score?

You’d be amazed at the number of people who actually don’t know their credit score!  Maybe they’ve never taken the time to check their credit, learn how to read their score, or how to improve it.  Or, even worse, if they’ve had a serious setback, they may even be afraid to look at their credit score.  If that’s you, relax.  You’re not alone.  There was a time when I didn’t want to look at my credit score, too… I’d just changed jobs, moved halfway across the country, and made some serious financial mistakes.  And my credit score took a HUGE hit.  For years, I avoided even looking at my score, much less trying to figure out how to improve it.  But the turning point came when I had to buy a new car and my score wouldn’t qualify me even for a high interest rate on that new car.  Instead, I had to settle for a used car with an even higher interest rate!  It was right then and there that I decided it would never happen again.

How did I improve my credit score?

Well, first and foremost, I made the decision not just to actually KNOW my credit score, but to continuously monitor my score, and to do everything that I could to improve my score… before I HAD to buy anything else.  And the first step to improving my score?  I requested my full, complete credit report and then, I learned to read and understand it.

What about you?  Are you ready to know your credit score, to work to improve it, and meet your financial goals this year?


Rectify your credit score with debt consolidation

Undertaking a debt consolidation program will definitely help you get rid of your multiple debts. Debt consolidation neither increases your debt, nor does it remove them. It just combines all of your outstanding dues into a single monthly payment, so that you can avoid handling multiple bills. Over a considerable period of time, all your creditors will be paid off, and you can heave a sigh of relief.

You should keep in mind that enrolling under any form of debt consolidation doesn’t immediately eliminate all of your debts. It only makes your accounts more manageable , helps you in improving your credit score & increases your credit repair possibilities indirectly.

Credit scores are calculated to predict how likely it is, that you can clear off your debts. It helps your lenders to decide whether you are credit worthy, and will be able to continue with the monthly payments. The FICO score which is the most popular and trusted form of credit rating, ranges from 300- 850. The higher you rate on the scale, the more are your chances to obtain a new loan and lower your interest rates on that. So as a consumer, you need to take care of your credit score as it will influence your financial condition.

Paying off your debts through debt consolidation will reveal your willingness to repay your financial dues. It will show your lenders that you are responsible enough to take the matter into serious consideration, and that you are taking steps to improve your financial health. Thus, it is most likely to have an impact on your credit score, which in its turn will convince your future creditors to approve your loan requests.

A debt consolidation program cannot instantly improve your credit score. However, it works in the following way, to improve your ratings:

A debt consolidation makes your payment more affordable.

Your debts are eliminated after completing the consolidation program successfully.

The account status will show as “paid in full”, after you have cleared all your dues.

You not only pay the consolidated debts, but also clear your other dues like utility bills, medical bills, etc.

You try to keep your credit utilization ratio within or below 30%, as it has a major influence on your credit score.

You add positive information on your credit report at various times

Gradually, your credit ratings improve.

However you will have to be consistent while paying away your dues through debt consolidation. You will have to resist the temptation of incurring more debts, just because your previous ones are on the verge of being cleared or since you’ll be having increased credit availability. Before opting for a debt consolidation, you should also be sure about your own financial capability. It will serve you no good, if you default on the monthly payments, even for your consolidation program.