Alexandria – an urban feel with a small-town vibe, filled with restaurants, parks for leisure, and various coffee shops. With one of the highest national average credit scores, Alexandrians have a lot to be proud of, including the way they manage their finances. However, there is still a substantial gap between good and poor credit owners in the vibrant city, demonstrating the need to take action and keep up with the positive trend happening across the state. With the real estate prices up by ten percent this year, the average home cost in Alexandria exceeds $700,000, highlighting the importance of having adequate credit to lead a stable and worry-free life.
Pyramid Credit Repair is a competent, nationwide credit repair company dedicated to helping individuals achieving their financial goals through a hands-on approach and educational tools. Home to a wide range of industry experts, we specialize in what we market – analytical and realistic credit fix with long-term benefits in mind.
What is Credit History?
Your credit history contains all information relating to your existing financial obligations, including various forms of loans, paid or unpaid bills, or credit card inquiries and accounts. It is the basis for assessing your creditworthiness in the eyes of a lender.
The credit reporting agencies collect information about the consumer’s credit experience – both positive (ex. timely repayments of a loan) and negative (ex. all unpaid debt, overdue loan installments). Suppose a financial institution that makes a decision to grant a loan or credit sees that there are many more negative factors about the borrower than positive information. In that case, it most often decides to reject the application. In addition, your credit reports generate your individual three-digit credit score that is also considered when applying for credit.
Follow these five simple steps to improve your credit history and get your dream loan from any institution:
Make Your Own Analysis
Make a careful analysis of all your previous commitments. Draft two lists for each of your positive and negative experiences as a borrower. For example, a positive entry could state, “on-time loan repayment in X institution (2017)” and a negative entry might include “a late payment on X credit card account (2020).” Your credit report should consist of all of the following positive and negative information, so you may use it as a basis for creating your own list. That way, you can not only track and log all the accurate information but also catch errors in your credit reports and understand the impact your financial behavior has on your credit. You may obtain free copies of your credit report once every twelve months from all three major credit bureaus – Equifax, TransUnion, and Experian.
Get Rid of Minor Debts
Improving your credit history should begin with eliminating minor debts that can be immediately taken care of, such as relatively small balances on your credit cards that accumulate high-interest rates. Once you have a list of all your current financial obligations at hand, it might be worth taking a look at the ones you can pay off right away, starting with the accounts that have the highest interest. Getting rid of more significant debts might require more time, budgeting, savings, and a precise action plan.
Outline an Action Plan
It is time to create a financial plan that you can stick to. You will be able to effectively pay off your most considerable obligations that are ultimately hurting your creditworthiness. That may include your mortgage. At this stage, you should:
- Realistically assess your current savings;
- Evaluate monthly income and all expenses;
- Designate additional money-saving opportunities;
- Think about an additional source of income, if necessary.
You may take advantage of a financial advisor’s services, who might provide you with invaluable tools and advice to get you out of debt faster.
Get a Professional Credit Repair Assistance
If chosen correctly, it is an inexpensive yet effective way to repair bad credit and boost your credit score in as little time as possible. How do these companies operate? Is every credit repair establishment a scam?
If you have several current commitments that spoil your credit history, you may contact a professional and reputable credit repair service provider. At Pyramid Credit Repair, our experts meet for an initial consultation free of charge in order to go over every detail concerning your credit and draft an appropriate customized credit repair plan. Throughout the entire process, you have 24/7 access to your personal dashboard, where you can track your progress and consult with live agents.
The credit repair industry has a bad rep, mainly due to multiple reports of scam activities, ridiculous contracts, pricing, and other issues surrounding the profession. Anything that produces red flags, such as obvious illegal activities, should prompt you to stay away from the commitment. Here are a few warning signs to look out for:
- Not answering all of your questions or addressing your concerns;
- Offering to create a new identity, such as social security;
- Asking for payment to pull out your credit history records;
Maintain High Financial Credibility
After you have fixed your credit even slightly, make sure not to let all that effort go to waste. Keep in mind the following general rules:
- Avoid having too much debt, credit cards, or loans that you cannot afford or pay back in the near future;
- Do not submit many applications for loans from different institutions at the same time. It lowers your creditworthiness and credit score.
- Pay off all financial obligations on time – if you have a problem with remembering deadlines, enter them in the electronic calendar, turn on reminders, and, if you can, set the option of automatic payments.
- Try repaying your balances right away.
- Take care of the continuity of your employment – an essential indicator of your stable income. Also, while not factored into your credit score, permanent employment is of value when applying for a loan or new credit line.
While credit repair can be a do-it-yourself process, many people resort to reputable companies that can help get their financial affairs on the right path. With the proper credit in your resume, you will sleep better knowing that your future is safe.