Top 6 Ways to Prevent Bad Credit With Credit Restoration Services

Credit Restoration
These days, with our obsession with all things instant, you’d think that bad credit could be fixed just as quickly. Credit restoration services can help you regain some of your former glory, but it takes time to rebuild that good credit, and there are several steps you should take to make sure that bad credit doesn’t come back around again! Here are six ways to prevent bad credit with credit restoration services.

1: Know your credit score

Your credit score is, essentially, a number that represents your financial health. Most lenders look at your credit score before giving you a loan or approving your application for new credit, so having good credit is important. Most people have three credit scores—one from each of three major bureaus: Experian, Equifax, and TransUnion. Some lenders also take into account Vantage Score. The higher your credit score, the better. Anything above 700 is considered good and means that you are considered less risky to lend money to because of how responsible you’ve been when it comes to repaying loans and making payments on time. It’s even better if your credit score ranges between 740-850 because it means you’ve had an outstanding track record for paying back debts promptly over many years.

2: Monitor Credit Reports

Credit restoration services monitor your credit reports so you can keep an eye on your credit score and make sure there aren’t any erroneous accounts, errors, or identity theft in progress. They also help individuals to ensure that creditors are reporting all information correctly. This prevents problems like having a late payment hit a credit report, only to find out later that it never should have appeared because of a clerical error on someone else’s part. By watching your reports and reading any correspondence from creditors, you may be able to stop negative items before they appear on your report at all. This will increase your chances of having high credit scores and increase your capacity for loans later on.

3: Stay Current on Bills

One of the easiest ways to build credit is to simply make sure you’re paying your bills on time. Getting off to a good start by paying all your bills on time and keeping current accounts open will help in improving your credit standing. The key here is consistency, as each bill that you pay shows a positive mark in your report. It’s important to not overdo it, though; otherwise, it can be interpreted as financially reckless behaviour which could lower your score rather than raise it. (Image: Flickr/benni) Credit Restoration Services – How You Can Restore Your Credit? By David Geisinger June 25, 2013 – 03:39 pm Comments In today’s economy it has become increasingly difficult for Americans to keep up with their debt obligations because of rising prices and financial issues that most often occur from unemployment or job changes. In addition, many people who have outstanding credit card debts are finding themselves deeper in debt due to finance charges on their existing balances and interest rates approaching 30 percent annually depending upon their credit profiles. With finances tighter than ever, many Americans are looking for ways they can improve their credit scores so they will have better access to better financial options like loans or mortgages when needed.

4: Understand Debt to Income Ratio

There’s a lot to keep track of when it comes to your credit score. One statistic that many people overlook is their debt-to-income ratio, which tells you how much money you owe in total and about your monthly income. For example, if you have a $1,000 balance on a credit card and an annual income of $20,000, your DTI would be 5%. The more money you make each month compared to what you owe to creditors—with a DTI above 20% considered excellent—the better off you are financial. And if you have poor DTI numbers but no credit cards? There’s still hope!

5:Diversify Income Streams

Diversifying your income streams can help you take in more money than relying on just one or two sources of income. It’s a good idea to set aside some cash that can easily be converted into cash in an emergency, such as money in a savings account, and keep it separate from any credit cards that you are likely to use for everyday purchases. Having an emergency fund will make it easier to cover an unexpected expense without having to turn to credit card debt. Once you’ve got your financial house in order, find at least one more source of income, whether it’s through a second job or a side project.

6:Avoid Late Payments

If you want to avoid late payments, your best bet is to be as proactive as possible. Monitor your credit card and bank accounts daily, so you can make sure that none of your balances are getting too high. It’s also a good idea to set alerts on your phone for certain limits or thresholds (e.g., a text that reminds you to pay at least the minimum balance due each month). You should also get in touch with any creditors whose policies may have changed—if they only accept electronic payments now, for example, or if they expect monthly payments instead of once-annual ones.

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