How to Fix a Bad Credit Score for 2020

0

https://www.youtube.com/embed/7xVbXb34gMk hello whats up people this is Mario in todays video Im gon na discuss how to fix a bad credit history and what actions you ought to take to fix your credit rating as quickly as possible look men all of us go through rough times in our life and when things get difficult financially our credit history do wind up taking a hit this could take place for lots of reasons it might because we lost our job we got harmed at work and now we are not able to work anymore because of medical issues a loss of earnings regardless can have many repercussions which could include naturally affecting your credit report so the question is what can we do if our credit history has actually been currently been harmed well men in todays video Im gon na cover what steps you ought to take if you currently have a bad credit report that has been impacted by late payments accounts in collections and even maxed out lines of credit now people all I ask is you smash the like button subscribe to this channel thank you very much people all right people lets get started federal law permits you to request a complimentary credit report every 12 months from each credit report agency that implies you can get a totally free credit report from Experian a free credit report from the TransUnion and a complimentary credit report from Equifax federal law also permits you to guarantee that your credit report is correct and as much as date so if you see any disparities in your credit report from any of the firms make sure you file a dispute now when you file the conflict the credit companies need to confirm the stuff they put in your credit report so if they can not prove that the stuff on your credit report is appropriate they need to eliminate it by law from your credit report within 30 days so absolutely take advantage of that men alright people so the question becomes where can I get a free credit report from each credit company excellent concern people you might actually get a free credit report from each credit company at annualcreditreport.com there youll be able to get a free credit report from Equifax a complimentary credit report from TransUnion and a complimentary credit report from Experian yearly credit report will only provide you all info on your credit report that deals with like late payments collections all the accounts credit lines and credit you have open however they will not give you a credit history number so to get a credit report number I recommend you to go to creditkarma.com and then there they will reveal you a credit rating number to see what number youre at the only distinction between Credit Karma and on your credit report is that yearly credit report will give you a complimentary credit report from all three firms versus Credit Karma will just give it from one and they will charge up for the others so my recommendation is a get all your credit reports from annual credit report initially and then go to Credit Karma to type of see a rating of what your credit rating is okay people all right guys its late payments now as all of us understand thirty five percent of a credit rating is based on payment history when you do not pay your expenses your financial obligation for thirty days or more it will report on your credit report prevent even having a late payment be reported on your credit report so if you are a couple days late on your financial obligation hey make that payment as quickly as possible since you have 30 days prior to they report on your on your credit report and likewise a late payment remains in your credit report for seven years whichs a huge part of your credit report so if you currently have late payments make certain that of course you take a look at it to see if they are 30 days late 60 days late or 90 days late prevent having your late payment or your financial obligation go to collections late payments and accounts in collections remain on your credit report for 7 years so prevent at all expenses for your financial obligation to go to collections and make certain you pay that late payment as quickly as possible now if youre having problem paying payments due to the fact that of financial problems contact the charge card or the automobile loan whoever let you obtain the money the bank etc and attempt to develop a payment plan to return on having current payments and something thats more flexible that is based upon your present income and your circumstance and let them understand hey Im having trouble making these payments please help me out lets make lets set up a payment strategy that is possible for me that I could pay for make these payments really essential before you make a late payment or even when you have a late payment to call them up and attempt to figure a new payment plan that works better for you so if you currently have a late payment on your credit report make sure you pay that payment however call your monetary company whoever let you obtain the cash and ask pleasantly hey you understand I want to make this payment however can you please get rid of that late payment on my credit report now as a reminder guys financial business do not have to remove these late payments from your credit report its a courtesy they do not have to its not a responsibility however if you are very nice with them youre polite and ask you know can you please assist me out here Im gon na make my payments please eliminate this late payment on my credit report I do not desire it to impact my credit some of them will be very good to do that for you fine men however really crucial be extremely very good and polite because once again this is a courtesy theyre providing for you they do not have to do it and make sure you pay that and also act on that after 30 days to see if its in fact been updated on your credit report alright people so lets discuss collections now collections can take place in lots of many methods you understand you can have medical expenses in collections you can have utility costs in collections you can even have unsettled parking tickets in collections men so you will be surprised you understand of what you will see in your credit report thats the reason why its so essential to take a look at your credit report to see whats really impacting you because it may be that overdue parking ticket that you forgot to pay five years ago in some way is affecting your credit report and you had no concept men so an account goes into collections when you have not made a payment at all normally 180 days however it depends upon the debt if its a vehicle loan that may occur in fact within sixty days actually your vehicle might get repossessed within sixty days however if its a credit card it might use up to 180 days before your debt goes to collections but it actually depends on the kind of financial obligation so make sure you understand that fine however once your account remains in collections that means you havent made your payment for a very long time it could be sixty days it might be 90 days it might be 180 days the goal naturally is to ensure none of your debt enters into collections but if its already there hey there are things you might do top if your financial obligation enters into collections try to work out the debt you understand try to negotiate something with the collection agencies so you could pay less on your financial obligation so basically what takes place is when you do not pay your financial obligation for a long time credit card companies will end up selling your financial obligation for pennies on the dollar to these third-party debt collector and these debt collector are individuals in fact start calling you every single day knocking on your door hey you got ta make this payment so what you might do is attempt to work out with them to lower your debt once youve in fact made a payment or you payed off your collections also attempt to work out hello can you please eliminate this collections from my credit report now as a suggestion guys these business are not bound to remove collections on your credit report its all based upon courtesy so really very important to make to be very really polite with them be really nice because again theyre not obligated to do this but as part of the settlement treatments try to have them likewise eliminate your collections on your credit report the other thing is very extremely important if you have old collections you understand things that occur more than seven years ago this should be removed from your credit report so if you have old late payments old accounts in collections that are actually older than 7 years they need to be eliminated due to the fact that late payments just remain in your represent 7 years on your credit report for 7 years and accounts in collections ought to only be remaining in your credit report for 7 years ensure you get in contact with that credit company and have them removed since theyre not expected to be there after seven years all right men alright so now lets speak about maxed out lines of credit so there might be a lot of reasons why you have a card maxed out I mean it might be monetary concerns medical concerns youre not able to work or obviously it could also be you know or not comprehending how to you understand keep a budget so theres a lot of things that might cause for you to maxed out your credit lines however the simple solution to repair that of course is to pay for your all your debt if you have a cost savings account where you have money conserved up that is making less than 1% and your charge card are charging you like 10% 20% again it makes no sense people utilize that money in your savings and settle your debt since not only will you increase your credit history and get to make it better however youll also conserve a lot of money on interest fine to assist out with maxed out line of credit the other thing you could do really well if you do not have the cash to settle some of that debt you understand of maxed out credit cards next thing you could do is request brand-new credit lines so getting new credit lines will increase your credit line so for instance if you have a $5,000 charge card and its basically maxed out so you have like for instance lets state $4,000 in financial obligation and that $5,000 credit limit see if you could apply and certify for another credit card that might really provide you another 5 grand so now you have one credit with a $5,000 credit limit and after that now you have another second credit card where another $5,000 credit line so you have like a $10,000 credit accessibility but you only owe 4 thousand and one of them so if you think about it thats a 40% credit usage versus when you first just had one charge card with $5,000 credit limit and you had a like a 90% credit usage so thats what might assist you with your you understand your credit usage rating so that might assist with your bad credit rating there could be numerous reasons your credit cards maxed out now if its from medical factors emergency situations is absolutely understandable but if its for other problems like you have costs issues which it does happen guys hey all of us make errors were all young all of us like to spend too much on things traveling or purchasing gifts for friend or family or simply heading out I suggest it occurs its occurred to me Im sure its happened to you too whichs alright but if you are having difficulty handling your expenses and youre continuously spending beyond your means every month I highly suggest you to make a budget sheet I advise you to utilize a spending plan sheet on Excel Microsoft Excel or utilize Google sheets which is free and construct a budget sheet were it will show all your expenses for example like lease a phone auto loan insurance coverage food and likewise reveals all your income coming in perhaps from a job maybe part-time task might be doing additional deal with the side hustles and then sort of compute all the cash that is can be found in and all the cash that is coming out and just type of find out where is my money going you understand how come Im overspending you know what is going on that might actually truly assist you kind of secret in and what areas you need aid with and what truly is the concern that is triggering youre spending beyond your means guys so every month you understand determine hey where am I spending my money every single month and where each and every single month my money is coming in and sort of actually pinpoint where everything is going alright people so thats quite much it I hope you guys discovered something from this video once again a road to having a better credit report is gon na take a while it takes some time people however as soon as you make a big change on your credit report make certain you follow up every 30 days to sort of see if its been updating again you can get a free credit rating credit report and credit history at Credit Karma to sort of see your rating and once again do not forget annualcreditreport.com you could get a totally free credit report from each agency hope you find out something do not forget to subscribe make remarks if you have questions please ask those concerns at the bottom of the YouTube remarks if you have any remarks make sure you do that and if you love this video I do make new videos every single Wednesday so subscribe to my channel men take care of people thank you quite Read More: Bad Credit Loans (Part 3): Summary Review & & Bonus Goodies!As found on YouTube

Video Transcript:

License: Creative Commons