1. Manage Debt
Get all the late payment caught up even if it is 29 days late do not let it get to 30. Once it gets to 30 days late it will report to your credit report and drop your credit score 45 points! It takes more than getting this late payment removed or deleted to add an additional 45 points to the credit score. Be wise, get into the habit of paying your bills on a certain day of the month every month. This way you are 100% sure there are no 30 day late payments on your credit report!!
2. Only Purchase What You Can Afford
Credit cards are great for emergencies and building credit. When they are used for frivolous spending you might be paying off that shopping spree for over a year, leading to bad credit in Houston. You should only spend what you have on a credit card. Although it is a line of credit, it is cheaper to pay it off when the bill comes in rather then waiting until the interest hits. Once the interest hits that total increases until the bill is paid.
Do not let anything go into collections. A collection and/or several collections can lead to bad credit in Houston! They appear to potential creditors as if you are not responsible to pay your current bills. Creditors want to see a potential client has the ability to pay bills on time without derogatory accounts. Your credit score paints a picture of who you are. As a company does not know you personally, they judge you by your habits on paper. They determine your ability to fulfill obligations by your credit report. Collections show a person has been irresponsible and can not fulfill the promise to pay. Many times several collection accounts lead to bad credit in Houston.
4. Save On Rates
Try to get the best rate on everything. The difference between having the worst rate on a house compared to the best rate could save you almost enough to buy another house (mentioned in “It Could Be Time For A New Home Mortgage Loan, Refinance in Houston?” blog) Even credit card rates, apply for cards with secured low rates rather than the high 21% interest rates. The reason to avoid such high rates is not just to save money, but to avoid getting into debt.
5. Fix It!
You do not let the plumber fix your cavity, you go to a dentist. Credit restoration companies specialize in bad credit in Houston. People get skeptical about companies and just avoid fixing their bad credit. Just like looking for a dentist, babysitter, plumber, any kind of service requires research. Read reviews, visit the office, if the company makes you feel comfortable and legitimate let them fix your bad credit. Impeccable Credit Services does not just fix bad credit in Houston, we give you the knowledge and tools to succeed and know how to avoid bad credit once you are done with our services.
Even if your credit is average there is always room for improvement. Avoid unnecessary debt and bad interest rates, save where you can, research, and get the knowledge to have Impeccable Credit!