Bad credit is an issue which haunts many Americans and hinders their ability to get the best possible rates for the loans that they need. According to Experian’s 2019 Consumer Credit Review, 34% of Americans have either very poor credit scores between 300 and 579, or fair credit scores between 580 to 669. Astonishingly, the report stated that only 1.2% have perfect FICO scores of 850. These statistics suggest that most people struggle with poor or very poor credit and might feel as if they don’t have the tools to repair and maintain their best score.
How do I correct poor credit and maintain my best score?
Below are some easy tips to maintain the best possible score and ensure you are receiving the best rates for loans to suit your financial needs:
Find out what date your credit card company issues their monthly statement.
By being aware of this date, you can make sure your credit card balance is at its lowest possible balance when the credit card company reports this data to the credit bureaus. A credit card balance that is paid off in a timely fashion will protect you from getting hit with late fees as well as damage to your credit score.
We also recommend reducing your owed amount 3 days before the due date and also limit your credit card usage during this window. Credit card utilization and payment history account for the majority of detriment or positive change to your credit score.
By following these tips, your credit score can be greatly improved and maintained over time. This will allow you to qualify for better rates and have access to loans to help benefit your specific financial situations. However, if you still have questions about how to increase your creditworthiness, please reach out to Adequate Mortgage before you refinance or pull cash out of your property.