Do you have less-than-stellar credit? Do you need help with credit repair? Are you looking for a loan but don’t know where to start improving your credit score? Look no further: 7 Figures Funding has brought you the following credit repair strategies. We are sure these strategies can improve your chances of being approved for that loan.
The first step to credit repair is knowing your credit score. A higher credit score means you’re a lower-risk borrower, which means you’re more likely to be approved for loans with better terms and rates. A lower credit score indicates that you’re a high-risk borrower, which means you’re more likely to be denied or offered loans with higher interest rates.
Strategy #1: Get Your Credit Report
The first step is to get a copy of your credit report to know your credit score and identify where you need to start repairing your credit. For example, there might be some errors on your report that lower your credit score. Reporting any discrepancies to the credit bureau for correction will help you.
Strategy #2: Consolidate Your Debt
One way to repair your credit is to consolidate your debt. This means that you can transfer all your debt to one credit card, usually the one offering a lower interest rate. Consolidating your debts will help you save on interest payments and make it easier to keep track of your payment date and amount. Some companies and agencies help merge debt and pay them off through affordable monthly payments.
Strategy #3: Check Your Credit Utilization Ratio
Your credit utilization ratio is where the amount of debt you have is divided by your total available credit. A high credit utilization ratio indicates to lenders that you’re using a large percentage of your available credit. You can lower this ratio by paying down your debt or increasing your credit limit.
Strategy #4: Pay Off Your Outstanding Collections
This credit repair strategy involves paying off your outstanding collections. You can start with the smaller balances or high-interest ones first. Paid-off amounts will give lenders more confidence in you.
Strategy #5: Create a “Goodwill Letter”
You may have negative items on your credit report that are accurate but don’t tell the whole story; you can create a goodwill letter. It entails writing a letter to the creditor explaining your situation and requesting that they remove the negative item. It usually works best in cases of a clean record.
Strategy #6: Hire a Credit Repair Company
If you want to do something but don’t have the time or knowledge, you can always hire someone else to do it. The same goes for credit repair. You can find many reputable credit repair companies to help you repair your credit. Just be sure to do your research so you don’t get scammed.
You may want to repair your credit to take out a loan, from buying a new home to getting some funds for your business. So, if you’re in the Chicago, IL area, contact our credit repair experts at 7 Figures Funding. We offer tools to help you with your money and up your credit!