How To Get Out of the Bad Credit Score Range

22 September 2022
Reading Time: 3 mins

Having good credit is necessary for a lot of things in life such as buying a car, getting a loan, or becoming a first-time homeowner. This number is basically a history of how you’ve handled money, and it shows lenders how likely you are to pay back any loans you obtain.

If you have a less-than-ideal credit score, the chances of you qualifying for any type of loan can be slim. That does not mean there is no chance of it ever improving, there are many ways in which you can increase it.

Thoroughly Review Your Credit Report

One of the most important things you can do when trying to get out of the subprime credit score range is to take the time to go over your report thoroughly. Every year, you can obtain a detailed accounting of your score by going to AnnualCreditReport.com.

The categories you’ll see on your credit report will include identifying information about yourself, your accounts, inquiries, and public records about foreclosures and bankruptcies. It’s necessary to review each section very carefully to ensure all information is accurate. If you find something that does not look yours, you can dispute it to have it removed. Other things you want to look for are incorrect credit limits, accounts that you’ve closed but are still showing as open, incorrect dates, having one account listed multiple times, and accounts incorrectly showing as late or delinquent.

Consider a Secure Loan or Credit Card

Secure loans are a good option for raising your credit score because lenders accept collateral to make sure you pay it back. Some people put things such as their car or house up to secure it. However, if they have trouble paying back that loan, the lender can put a lien on whatever they put down as collateral. Borrowers might find this route useful because they can get a relatively large amount of money, and as they pay it back, it looks good to the credit agencies.

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