Is your credit score difficult or impossible to change? You might not even realize that you can and should try to repair your credit. Truth is, credit scores can be improved with the proper practices and help from the right people. What are the signs that you need credit repair?
Sign #1: Not getting hired for a job
You might not know this but employers do credit checks before hiring you. If you have been having a hard time getting a job, your poor credit history may have played a big role on that. So check your credit report and try to get your credit score repaired. Who knows, that could be the reason you’ll land that dream job, right?
Sign #2: Soaring interest rates
Wouldn’t it be great if you can enjoy using your credit cards without having to worry about those high interest rates? High interest rates on your credit cards are mostly based on your credit score; they can even get higher because of bad credit score. The lower your credit score is, the more the bank will likely charge you with higher interest rates when lending money. You might not notice it, but there is a huge difference between having good credit score and having bad credit score. Good credit score can give you as low as 8% annual percentage yield (AYP) with your cards, while bad credit score can give as high as 30% APY.
Sign #3: Having someone else’s name on your bill
This usually happens when you have poor credit history and bad credit score, so you use someone else’s name on your bill. This should not happen because these bills are yours and so that the person whose name is on the bill will not be held accountable. The sooner you can fix your credit score, the better; having your name on the bills, the better! It means you have good credit score and you don’t have to worry about anything.
Sign #4: Your credit score is under 670
On the FICO Score 8 scale of 300 to 850, one of the credit scores lenders most frequently use, if your credit score is under 670, it is considered bad. This is usually caused by default, unpaid debts, late payments, or other negative marks on your credit report. If your credit score is under 670, you need to have it fixed right away. Having good credit can have a huge impact on your interest rates, how much money you make among others.
Sign #5: Your credit application is denied
Of course, not having sufficient source of income is one of the main reasons why your application might be denied. You may not know this, but bad credit score is the number one reason why you might get denied. When you are denied, that is a sign that you should look into credit repair.
Sign #6: Closed credit cards after paying them off
When credit card companies see you as a risk, there is a possibility that they will close your credit card once you settle your debts. They see you as a risk based on your credit history. Bad credit score is a basis for them to close your credit cards.
Sign #7: No one is willing to cosign your loans
Having to rely on someone to cosign your loan is an indication already that you have bad credit score. When no one is willing to cosign your loan, even your family, that indicates that you need to get your credit score fixed.
Sign #8: Your phone is blowing up with calls
Of course, too many phone calls are very annoying. When debt collectors are one of these who always blow your phone up, that is a big sign that you should get your credit score fixed. Nothing is better than getting to enjoy your cup of coffee or glass of wine with no annoying phone calls.
Sign #9: Getting denied when trying to rent a place to live in
Having bad credit history can pay a vital role when landlords deny your application. They also do credit checks. When they see that you have unpaid debts, this will give them an impression that you make late rental payments. Of course, having a cozy place to go home to is one of the best feelings. If you don’t get to enjoy that, you should get your credit score fixed right away.
Sign #10: Fear of checking your credit report
When you don’t check your credit report out of fear, that is a big indication that you have bad credit score. Truth of the matter is, not checking your credit report won’t fix your bad credit score. Wouldn’t it be great when you receive your credit report and you don’t have to worry about opening it? Instead, you should be proud when checking it, so go ahead and get your credit score fixed.