Bad credit can become a problem for anyone. Unexpected things happen in life. Maybe a sudden job loss has caused you to miss some bill payments or perhaps a large medical bill is messing up your finances. Whatever the reason, your credit rating might be suffering. Don’t worry though, it is possible to fix a bad credit rating.
What is a Credit Rating?
Before we talk about fixing your credit rating, we should first discuss what exactly it is. Your credit rating is simply how lenders decide if you would be a good borrower. Some employers also use your credit rating to help them to determine whether or not to hire you.
In order to assign you a credit score, a few factors are considered. The most important factor is your payment history. This accounts for 35% of your score and assesses whether or not you pay your bills on time. The amount you owe accounts for 30% of your credit score and the length of your credit history accounts for 15%. Any new credit takes up 10% of your score and assessments on the type of credit you have is another 10%.You might hear your credit rating referred to as your FICO score, which stands for Fair Isaac Corporation credit scoring. The higher the number, the better your credit. Perfect credit is 850, but very few people ever achieve that. Very good credit, which is around 740 or higher, gives you access to the best interest rates from lenders. Ratings between 580 and 740 will still get you a loan, but the terms might not be as good. A credit rating of less than 580 may be causing you some problems.
How to Improve Your Credit Rating
There are a few simple steps that you can take to improve your credit.
1) Pay your bills on time, every time.
2) Keep the amount that you owe on credit cards less than 30% of the cards’ limits.
3) Pay outstanding debts as soon as possible.
4) Only get new credit if you need it.
5) Keep old credit card accounts open, but don’t use them.
It can take some time for these strategies to influence your credit score. Don’t be surprised if it takes weeks or even months for your rating to improve.
Finding Help with Credit Repair in Orlando
If you need faster help with credit repair in Orlando, consider talking to one of our specialists here at Credit360 Credit Repair. We are one of the leading credit repair companies in Florida, and we are passionate about helping our clients. We offer both personal and business credit solutions.
Our experienced team specializes in credit repair in Orlando, and we work with people from all walks of life. We offer advanced solutions and strategies that help our clients to recover after a bad credit rating. Our team has successfully removed collections, liens, repossessions, broken leases, identity fraud, bankruptcies, foreclosures, and charge offs from our clients’ credit ratings.