Need Cash? Here Are Some Solutions for Those With Poor Credit

Those searching for a personal loan for poor credit have a few options to explore. Three of the most popular are credit cards, home equity loans and personal loans for poor credit. The obtained monies can be used for many reasons to include purchasing jewelry or upgrading a business. The type that’s best will depend on the intentions for use and personal financial state.

Here’s a bit about each type to help anyone make an informed decision when they decide to pursue a personal loan for poor credit.

Personal Loans

One can get a personal loan from most banks. As stated before, they can be used for most anything and are based on the ability to present proof of income as well as assets. Those assets have to bet worth the amount the person is borrowing. It’s a quick process for application when these things are present and accounted for and the applicant will find out within a few days tops if they are approved.

The main downfall is that interest rates are typically high around an average of 12%. The time limit for repayment varies but they’re usually no more than two years. Due to this, any very large amounts are not recommended to be financed this way as many have trouble paying them back in two years.

Credit Cards

Credit cards are another option when consumers are searching for a type of personal loan for poor credit. They are the same thing as securing a loan as they are also repaid later. The cards are easy to use because they are widely accepted for payment on most everything.

They are simple to apply for and can be upwards of $10,000. The application is reviewed fast, usually no more than two weeks. There are also those that are reviewed over the phone and approved in only minutes. It all depends on the card company. Terms vary greatly, so it’s important for whomever is applying to really look over all the fine print.

Within this print, there will be many things to take note of. At the top of the list are interest rate, yearly fees, overage fees and more. It’s been proven that debts pile up more quickly using credit cards than other types of loans because they are so available and easy to swipe at any retailer. For someone looking to a personal loan for bad credit, this may be an unwise decision and end up hurting credit not repair it.

Home Equity Line

The home equity line of credit is a smart decision. It allows homeowners the ability to borrow against the value of their home. It’s easy to figure how much someone can get. All they have to do is take the home’s market value against what is still owed on it. Many choose to not do this if they are planning on selling in the near future. However, if they are planning on staying there for the long haul it’s a great option.

Like other personal loans for poor credit the money can be utilized for whatever they please. Often they’re used for home improvements, consolidating debt and so much more. The interest rates are low to average and can be repaid over the course of up to 20 years in some circumstances. There aren’t many downsides to a home equity loan of credit; in some cases the interest is a tax deduction. That’s hard to beat!

The main negative to this type of personal loan for poor credit is that the person taking it on can sometimes get in a worse situation in regards to their mortgage. If there are two sources of income and they are well above the bills being paid each month the individual can probably repay the loan with ease. Otherwise, it may not be of any benefit. Especially of the consumer ends up losing a job or suddenly is unable to work. Plus, rates sometimes fluctuate.

Be matched to premiere lenders for a personal or short-term loan with ease when you work with Willow Loans. Regaining control of finances even with bad credit is the goal of this growing company that provides a quick and easy method for application online. Competitive rates and flexible terms are a click away, and you’ll have money from trusted lenders deposited directly into an account of your choosing. Applications are free, then fees and loans are up to the individual and the provider. Don’t hesitate to trust in a company that can easily help you find an unsecured loan in your time of need

How to Really Use Your Credit Cards

Credit cards are a double edge sword. People are addicted to the plastic crack. They buy stuff they don’t need to impress people they don’t like. Plastic money has Americans hooked. Advertisements for cards are everywhere. How bad is it? According to some statistics the average American household has over $15,000 in credit card debt.

I do not advocate that everyone should have a credit card. If you can not control your cash you definitely can not control your plastic spending. I teach Financial Peace University classes and we strictly preach debt freedom and get rid of your cards. Why? Because most people will spend when they carry a credit card. Furthermore those same people will not pay off their current charges and carry a balance. Thus putting them back into credit card debt.

There is a myth that you need credit. That is a lie. You don’t need credit to survive. It does make it easier to travel, rent cars, and book hotels. But the truth is you can do that with a debit card. The buy now pay later syndrome is why so many people are in debt. This is how people get trapped and are on the path to financial disaster.

Only The Responsible and Disciplined

I use my cards everyday. But I pay off my balance every month. Paying interest is stupid. I still think that most people should not own or use a credit card unless they are responsible and disciplined to pay it off every month. As I mentioned earlier if you can’t control your cash you will do worst with credit cards.

Hear me out again. Paying interest on things you buy is just stupid. If you can’t pay off the balance do not buy the darn thing. Do you really need it anyway? Is that new big screen necessary now. Or is happy hour that important? Think before you pull it out. Better yet leave it at home.

Not For Emergencies

They shouldn’t be used for emergencies. This is an excuse that people use because they are not financially ready. What are emergencies? The tire blew out, the air conditioner doesn’t work, kids need new shoes, you are hungry, and broke. You pull out your plastic to pay for these things and then you start to rack up that balance. You fail to pay the balance and the next month another “emergency” pops up. If you don’t have an emergency fund then you are setting yourself up for failure.

Here are 4.5 Ways to Really Use Your Credit Cards:

1. To Make That $$$

Wealthy people use cards to expand their businesses. They use it to make that $$$. Here is the key! They pay off their balances at the end of the month. They generate income with their cards and then pay it off. They hate paying interest. I am an affiliate marketer and I use my credit cards for marketing and I pay the balance every month.

There is a daily limit on your debit card usage. But not with credit cards and I don’t need limits on my spending. My credit cards help me make money. If your plastic can help you increase your income then by all means use it.

2. Not for Personal Use

If you can’t pay the balance by the end of the statement do not buy it. If you couldn’t buy it with cash then don’t get it. I know you will pay it off later. If that was true there wouldn’t be all this credit card debt floating around. Don’t even carry it with you. Just having it will give you an urge to buy stuff. Stuff is what kills people financially.

Broke people pay fees and interest rates because they can’t afford to buy with cash. That is the consequences of not having enough money to buy what you want. Fees and interest add up. You are just giving money away when you can’t pay it off before the statement date.

Here is a trick I use. I always have a monthly budget. I know where every dollar is going. I take that budget and put it on my credit card. In fact I create a positive balance on my cards. Then I stick to my budget and I am never owing a balance. Why do I do this? You will see when you read #4.

3. Your Personal Bookkeeper

This is why I use my credit cards for every purchase. I get a statement at the end of the month, quarter, and year. I see where my money went and they add graphs too. I download the statements to my Quick Books software and give the year-end statements to my tax guy. Boom accounting is done.

4. Perks, Privileges, Rewards, and Points

The icing on the cake is all the perks, privileges, rewards, and points you get by using your cards. I am a cash back guy and I will get a lot of cash back this year (which I save to my investment accounts). My business credit cards gives me all the perks. I get points, miles, discounted VIP event tickets, and I don’t have to pay exchange rate fees when I travel around the world.

I get travel insurance, rental car insurances which saves me $$$ on rental cars, and much more. Plus all this stuff is free when you pay your balance off. When you use your credit cards correctly you can cash in on the benefits

4.5 To Start Your Business

I caution you to not use your credit cards to start your business. Especially if you are a newbie with no experience in the field you are about to enter. The risk is too great. Now I used my credit cards to invest into my business. That was around $20k. That was a huge gamble. But I had 4 years of experience when I took the plunge.

I also kept my day job to help make the monthly payments. I created multiply streams of income to pay off the balances faster. Those balances are at $0 now but I had to rise, grind, and shine. It took some time but my business is successful. If your business fails you still have to pay those credit cards.

Bottomline

Most people should stay away from credit cards because they can’t control their cash and credit cards will make it worst. Only use it if you can afford to pay off the balance every month. Remember paying interest and fees is stupid. Don’t be stupid. It’s a great accounting tool and the perks are worth the discipline and responsibility.

Charles Fitzgerald Butler, is an author, entrepreneur, and expert in internet marketing. Charles has a passion for helping people start and run successful home businesses. You can partner with Charles and start building multiple income streams from your home. Charles’ goal is to help all who partner with him achieve cash flow and profits from their business.

The Top 3 Export Credit Financing Mistakes Businesses Need To Avoid

Any type of business requires funds to sustain their day-to-day operations. Import and export companies face the same situation as well. Fortunately, there are various export credit financing solutions that importing and exporting businesses can rely on. With these solutions, these businesses will have fewer worries regarding the funds they will need for their operations.

To be successful in acquiring and getting the most out of these export credit financing solutions, it is important to avoid certain mistakes. These top 3 mistakes you have to avoid are:

1. Failing to fully understand your credit utilization ratio. Banks and financial institutions may examine the existing debts you have on your business’ books to see if your current and projected cash flow can handle taking on additional debt. You can avoid getting a rejection from these establishments by learning beforehand how to calculate both your personal and business’s credit utilization ratios (the amount you owe compared to your credit limit) before applying for a new loan or any type of financing option. Financial experts say that a good rule of thumb is to keep your utilization rate below 30 percent for both overall and for each revolving credit line.

2. Not calculating your annual percentage or APR. There are many numbers and fees involved with any financing offer. Interest percentage rate, daily debits, and service fees are just some of these numbers. You can understand and make sense of all these numbers by first calculating the APR of your offer before signing any contract. The APR pertains to the true cost per year of borrowing money and is usually higher than the advertised interest rate. It takes into account the interest rate and compounding effects as well as any additional fees and charges. As such, it is essential to ask about the APR when looking at loan offers. If you can, learn how to calculate it yourself. If a bank or financial institution won’t give you the information you need to calculate the APR, they may not be looking out for your best interests and it would be best to consider another company.

3. Not asking for feedback from banks or financial institutions that rejected your application. Lastly, if one of your financing applications is rejected, don’t give up easily. Ask the institution for feedback and make an effort to learn from the process. Business financial consultants say you should politely ask for an explanation of the lender’s decision to see what and how you can improve for your next attempt.

Life Is Tough When Your Credit Score Stinks, So Set’s Fix It

Whether it was a foreclosure, short sale, deed-in-lieu of foreclosure, a job loss or just plain irresponsibility, there are some steps you can take to get your credit score back into the range where it is attractive to mortgage lenders and you can finally buy that house.

Where does my credit score come from?

Credit scores range from 300 (the worst) to 850. Although a score of 700 will get you lower rates and more credit opportunities than lower scores, 760 and above is considered prime.

If you’ve ever ordered your credit report you did so from one or all of what are commonly known as “the big three” credit reporting agencies: Experian, Trans-Union and Equi-fax.

These agencies compile massive amounts of financial information obtained from companies from which Americans have obtained credit in the past. From this, they determine each person’s payment history, the length of the person’s credit history, the various types of credit he or she has and the amount of credit debt held.

When the big three agencies turn their information over to Fair Isaac Corporation (F.I.C.O.) or, in some cases, Vantage, it’s fed into a complicated formula and out pops a three-digit number that pretty much rules your financial life. Thankfully, your credit score adjusts, according to how risky you appear.

Pay on time

The best way to repair your credit score is by paying your bills on time, every month. Yes, it sounds simple and it is the responsible thing to do, but it’s also one of the quickest ways to pump your score into a more acceptable range. Don’t believe us? According to a study conducted by Experian,100 percent of super prime consumers and 97 percent of those with prime credit have no late payments on their credit reports.

Furthermore, The Raleigh Area Development Authority says that a person with a 707 credit score can raise it 20 points, just by paying bills on time for one month.

Manage the plastic

credit score

Your use of credit cards may be the culprit when your score is at rock bottom.

First, credit scoring agencies look at the age of your credit. New credit, such as opening new credit card or department store accounts, makes them leery. Just what will you do with all this new-found credit? Since they don’t know, you become a higher credit risk and take a 10 point ding on your score.

High balances make you appear risky as well. If your cards are maxed out you may lose up to 70 points on your credit score.

Don’t close your credit card accounts, just pay them on time. Consumers with no credit cards or installment loans look risky (it’s that fear of the unknown again) and tend to be penalized with lower scores. Besides, closed accounts still show up on your credit reports and may still affect your score.

If you have the money in your budget, another quick way to raise your score is to pay down high credit card balances. Try doubling your payments for a few months or at least pay a payment and a half.

If you build it, you can buy it

Many Americans didn’t do anything to deserve a low score other than to have never used credit. To credit scoring agencies, these people are, again, unknown entities. How they will use credit when they receive it is a mystery and therefore makes them a credit risk in the eyes of the agencies.

Unlike the folks that need to slow down on their credit card usage, you need to obtain a card, use it and pay the balance on time. Ensure that you obtain a card from an institution that will report your responsible use of credit.

To make it easy on you, we’ve compiled this handy, fix-your-credit checklist:

– Order your credit reports from each of the big three agencies to determine where you stand

– Dispute any errors you find on your credit report. Some shady credit counseling companies may suggest you dispute everything on the reports, which may do way more harm than good. The Federal Trade Commission offers advice on how to file disputes on its website.

– Pay all your bills on time, every month

– Pay down your credit card balances. If you can only afford to pay one at a time, pay department store cards first, if you have them, otherwise, pay off the one with the highest balance first. Aim to get the balances within 30 percent of your credit limit.

– Use old credit cards that you haven’t used lately to keep their histories active. Remember, old credit is worth more than new credit when it comes to your score.

– Obtain a secured credit card if you have no credit history. Use the card for small purchases and pay the balance on or before the due date.

– Consider obtaining a small loan if your credit report lacks an installment loan history. Ensure that the lender reports to all three agencies.

– Ask creditors to re-age your accounts. This might be challenging but if even one creditor agrees to do so your score may improve dramatically.

Ask the credit card companies to increase your credit limit

Erika Bentley

Keeping Real Estate Simple

5 Tips for Improving Your Credit

Troubling financial situations happen in life to a host of individuals and families. The key to solving the crisis is having an action plan that you can follow to resolve your situation. On top of that, don’t become discouraged. With patience and determination, you can improve your credit score and get on the road to financial health.

Consider the following 5 Tips for improving your credit:

Debt Merging: This May Be the Right Path for You

What is Debt Merging? This type of loan is a single loan that enables you to repay your debts to a number of or all of your creditors at once. This type of loan usually comes from a financial institution.

Consequently, you have only one outstanding loan remaining – to the financial institution. However, remember to contact a variety of financial institutions before you select this type of loan. The interest rates offered by competing financial institutions may be different.

Study Your Credit Report

The reason to do this is to determine which items you can pay. A credit report contains a history of how an individual has paid their bills and how much open credit they have. It also contains anything else that would affect a person’s creditworthiness. A credit score is a judgment about an individuals’ financial health, at a specific point in time.

Banks or other consumer agencies, which are considering a person for a loan or other financial products, will check one’s credit history. Your credit score calculated by the credit reporting agencies is available to you. However, you must pay a fee.

You may want to know your credit score if you suspect it requires improving. Additionally, you may want to know it if you’re planning to acquire a loan or other new credit in the coming years.

Work With Your Creditors

Make contact with your creditors to arrange payments to them. Many creditors will allow you to move forward with a special payment plan. Your goal is to work out a payment plan with them that you can afford. These relieve financial stress on you, while allowing you to pay down, consistently, your debt. Essentially, it’s a good solution that benefits you and the creditor.

It’s important to get all the details of the arrangement – the agreement – in writing. Remember to calculate whether you can actually make the regular payments that you’ve agreed to with the creditor(s).

Budget, Budget, Budget Your Typical Daily Expenses

Part of the process of improving your credit is saving money so you can use ‘saved money’ to pay down debt. You goal is to get out of debt sooner rather than later, while still being able to afford your debt repayment responsibilities.

Look at your household budget and cut out spending of extraneous goods and services you really don’t need. Be honest with yourself and do without where you can. You will be happy down the road when that debt load is lifted and your credit score has improved.

Consider a Financial Expert

There are many expert financial specialists available who have the experience to help you make informed financial decisions. A financial specialist such as an accountant assists people in planning and managing their financial resources. They offer information, insight, advice, tips, and more that you may not be aware of to help you get back to a healthy financial state. Use them when you feel your efforts alone may not get you the desired financial results you require.

Consider the above 5 tips for improving your credit. Stay positive and take the necessary action now to improve your financial situation. You can do it with a concerted, methodical, disciplined effort. Moreover, consider that help from a seasoned professional. Your plan of action for better financial health begins today!

5 Tips For A Factoring Application

Businesses monitor the cash flow demands on a regular basis. Nowadays, they use the invoice factoring, especially when they don’t want to get loans from banks. If you own a business and you want to submit a factoring application, consider the 5 tips given below before you go ahead and submit your application.

1. The Factoring Application

First of all, you need to get in touch with the factoring company so that they get to know more about your business. You can also talk to the company on the phone. The information you will provide is given below:

· The name of your company

· Business type

· Information about your valued customers

· Your contact information

The acceptance of your application depends largely upon the type of your business and customers. Most factoring companies prefer invoices owed by trusted businesses. Individual consumers are not that important in their eyes.

2. Aging Reports

In the aging report, details for the initial application are included. The report mentions the amount that the customers owe and the time they will take to make payment. Usually, customers that make payment within 30 days are considered better than those who take more time.

3. The Process of Factoring

The buying of accounts receivable at a good ratio of discount is called factoring. The factoring provider offers an upfront payment on invoices that are approved. The factor takes care of the collection process and then releases the balance as soon as the invoice is paid by the customer. The fee is deducted by the factor before the balance is released.

4. The Cost of Factoring

So, how much will the factoring cost? This is a common question. The cost depends upon the industry, customer strength and the time it takes for the payment to be received.

The pricing is also affected by the value of invoices. The rates will be better if the volume is higher.

5. The Underwriting Process

The factor is interested in your customers’ strength because they are going to buy the account receivable instead of putting together a plan. Moreover, the factor will conduct an evaluation of the creditworthiness of each customer.

Aside from this, the factor will look at the public records of the company to verify the titles. This search involves liens, judgments, corporate status, pending litigation, UCC, criminal records, back taxes and so on. It also includes other items that may affect the process of receiving payments.

On average, the process of due diligence may take 5 to 10 days on fresh accounts. As soon as the starting review process is finished, the approved customers can receive cash within 24 hours. So, the process is not as complicated as most people think and the cash can be received easily.

Factoring offers cash flow solutions for old and new businesses. And they can offer funds for expansion, growth, and expenses.

So, this was a brief introduction to the process of factoring. Hopefully, you can take the right steps now.

Are you looking for a good factoring company for your business? If so, you can check out factoringcompanyguide for one of the best factoring companies.

How’s Your Credit?

As a business owner you’re entitled to create for yourself a business credit profile to eventually obtain a massive amount of money in your business name alone.

But what about your personal credit? Many work from home business owners credit scores are just too low. Costing them thousands of dollars and can be easily rectified if they could learn how to raise their credit score.

So what do you have to do to raise your credit score?

Well for starters you’ll need to see what’s on the three major credit bureaus (Experian, TransUnion, Equifax) reports on you. You can obtain a free credit report from each credit reporting bureau once per year or if you were denied credit recently. If you don’t want to wait 2-3 weeks for your reports to come in the mail you could always pay the $40 fee to Experian.com and get immediate access to all of your reports.

Once you’ve acquired your credit reports, if you discover you have any negative items on them, then you’ll need to be about the business of getting those items removed, even if you were at fault for them being there.

What most people don’t know about restoring their credit is that when you have negative items on your reports, you can dispute them with either a dispute letter via the mail or online at Experian and TransUnion. Equifax won’t allow you to dispute negative items online, you’ll have to go via the snail mail route with them. There is an advantage to disputing those items online because it’s less time consuming. And besides, who wants to wait for reports to come in the mail if they don’t have to.

So when you file a dispute, the credit reporting bureau Experian, TransUnion, Equifax has to contact the creditor who reported the negative item or delinquency on your report and ask them to verify the accuracy of the account. The creditor is required by law to provide proof of the account within a 30 day time period. If they don’t, those item(s) will automatically be removed from the requesting credit bureau for failing to provide proof.

If for some reason you later check your reports and see that the negative items were not removed, then you’ll need to challenge it in writing. If you’ll consistently challenge the credit bureaus about items that don’t come off, eventually the creditor will stop responding or fail to provide proof of the account. When that happens that creditor will not respond to the credit bureau’s request within the 30-day required time-frame and the delinquency will then be removed.

Take the power into your own hands and raise your own credit score.

Frank Mayes is a growth oriented home business entrepreneur who has 34 years of income tax preparation experience. Frank also reviews popular home business ideas and opportunities.

5 Common Credit Card Myths

We’ve all been given information regarding credit and how to use it that may be incorrect. It’s important to sift through the myths and get to the truths that will help us to maintain, rebuild, or start a good relationship with credit that will last for many years.

Most of us have been passed down information that tells us to get rid of cards that we don’t use or to only use them for emergencies. These practices are presented to many of us as healthy ways of showing good credit use. Although the myths are many, a little bit of information is all you need to right a lot of the wrong information.

Myth #1 You Should Only Use Credit Cards for Emergency Purposes

A credit card that is used frequently and paid on time shows the credit card company that you can handle credit responsibly. The more activity that a credit card company sees being handled responsibly improves your credit score.

A card that is used just for emergencies doesn’t give the credit card company enough opportunity to observe how you handle credit. The routine credit activity that is paid on time shows responsible handling of credit and these are the things that boost credit scores and credit limits.

Myth #2 You Should Close Cards that You Haven’t Used in a While

The longer you have a card the better it reflects on your overall credit. This means a card that you’ve had for 5 or 10 years that doesn’t get used much is still valuable. If you close that card your available credit decreases and this reflects negatively on your credit.

Credit age shows credit maturity, your ability to positively maintain a credit account over a long period of time. This is attractive to the issuing companies. A better approach to handling those older credit cards that don’t get a lot of use is to plan to make small purchases every few months, just to keep the card active. The loan activity is positive if the cards are being paid on time.

Myth #3 The Minute You Use Your Credit Card Interest Begins to Accrue

You don’t ever have to pay interest on credit purchases if they are paid in full within the day grace period. Interest only accrues on any leftover balances that remain after the grace period.

The more on-time payments that are made, the more your credit is improved and this is reflected by your rising credit score. Every on time payment reported to the credit bureau is a positive notch on your credit belt.

Myth #4 Merchants Can Pre-set the Required Amount for Credit Purchases

By law, a merchant can only require a $10 minimum purchase for credit cards. No more than that. Beware of merchants that require more than $10 to spent if you use a credit card, this is not legal.

Myth #5 You Should Pay Your Balance Off Before the Due Date

If you are paying your balance off before your due date you aren’t accruing a payment history because you aren’t being billed. Allowing your purchases to remain unpaid for a full billing cycle allows a bill to be created and an on-time payment to be reported to the credit bureau.

It’s OK to do this because your purchases aren’t accruing interest until the end of the billing cycle after the grace period has passed. If you allow a bill to be created and paid you are doing everything within your power to benefit your credit positively. These positive on-time payments will be reflected in your credit score and with the increase in your credit limit.

There are many credit myths out there that keep many people confused and using their credit cards in non-beneficial ways. It pays to do your homework and debunk the many myths that surround credit card use – visit us here to learn about the best credit cards and how to make them work for you.

Bury Bad Credit For Good

Bad credit can be very stressful. It often throws people into a tailspin, but there is hope. It is hard to pay old debt when new debt is steadily accumulating. So what do you do?

There is a strategy that can be applied. There truly is a method to the madness! Really…

The first thing you want to do is set up an account online with creditkarma.com. This service actually allows you to check your credit whenever you want without affecting your credit score. It also allows you to dispute discrepancies online.

After this is done, you want to contact all of your creditors to negotiate a payment for delete relationship. You want as many creditors as possible to agree to delete the item from your credit report if you make a payment. You want to try to negotiate a payment that is less than the full amount but if that is not possible then an agreement to delete for payment in full will suffice.

You want the delete for payment in writing so that there is no confusion. This is very important because they may not delete it unless you have it in writing. Also, there have been situations where an item has been deleted from the credit report and has reappeared in the future. If you have a written letter, you can simply have it removed again with no problem.

Most importantly and this is very important. If your account has already been turned over to a collection agency, you do not want to negotiate with the collection agency. They do not have the authority to delete a record from your credit report. It is imperative that you contact the creditor directly.

If the creditor does not want to delete the record, it is up to you to decide whether to pay it or not. If it is going to remain on your credit report it may not be worth it to make the payment. If you decide to pay anyway because it makes you feel better… that’s great… but it may not make a big difference in your credit score.

Debt can be overwhelming when there is more debt than money. This can be remedied by paying off the smallest debts first then gradually working up to the largest debt. Psychologically, this will make you feel as if you are making some progress right from the beginning. There may be some creditors that require you to submit in writing.

Remember that lots of people have credit that is probably worse than yours. I know that may seem impossible… but it’s true. You can repair your own credit and you can do it for a lot less if you do it yourself.

4 Quick Tips to Improve Your Credit

Credit Scores. It can be one of those touchy topics depending on how you see it. Your score can take years to build up and just months to destroy. We’ve all suffered from credit mishaps; from forgetting to make a payment to utilizing all of your credit. Sometimes, a bad score can be result of something out of our control- divorce, medical bills, and bankruptcy. Simply, maintaining your credit is a way of life. Since almost all big purchases require credit, A low score will make everything more expensive. You’ll have to pay a higher interest rate on loans over time.

A score Is used to show credit history, on-time payments, responsibility and discipline. A low credit score will improve naturally over time, so don’t lose sleep over it. However, if you have upcoming equipment financing or leasing needs in the near future. It’d be smart to try raising your score beforehand. That can be the deciding factor between boosting you into the next tier and saving money.

Let’s be realistic. There’s no miracle method to raise your credit score 100 points in a month. Some Credit Repair “Experts” will try to fool you into believing this can be done, but it’s simply impossible. You hear it all the time in advertisements – ” 1-2% APR for excellent credit “, but you’re never sure what exactly is excellent credit. Let’s break it down, There are 4 tiers of credit.

Tier 1 (Excellent Credit): 700 and above

Tier 2 (Good Credit): 660-699

Tier 3 (Fair Credit): 620-659

Tier 4 (Poor Credit): 619 and below

Credit score

Tier 1 and 2 typically get the best rates. Tier 4 is usually the most difficult to get approval for. Even if you have a Tier 3 score, it’s still advisable to try and improve your score. It’s a important part of your life and business. If you’re a newer business without cashflow statements, it can be hard to obtain financing. Many Lenders will use your score to assess you. That’s why it’s important to improve your credit score when you can.

Here are our 4 best hacks for quickly improving your credit score. The improvement can be anywhere between 10 points to 40 points which should be enough to bump your credit score up. Note: These are quick tips to boost your score up, we will have a more comprehensive guide on maintaining your credit later.

Dispute the negative marks – We get it. It’s hard to pay your bills on time sometimes. Between juggling your business and family, paying your bill sometimes slips your mind. There’s 3 major credit reporting bureau: TransUnion, Equifax, and Experian. Your credit report with all of them will vary a little bit. Contact them and dispute whatever you can. Write as much as you can with your dispute and make copies of everything.

NOTE: Spend time and be thorough – This can make a huge impact on your scores.

Open A New Secured Credit Card – According to Credit Karma: People with a credit score of 800 and above typically have 7 open credit cards. While you don’t want to open more than 1 a year, 7 is just a guideline number to aim for. No matter how bad your credit score might be, you can still get approved for a secured credit card. Secured Credit Cards are the best way to rebuild your credit. You’ll have to put a deposit down, but the lender will give you a line of credit. To pick a good secured credit card to use, we would use this Guide by Magnify Money.

NOTE: You want to keep your credit utilization under 30% usage, so monitor your usage accordingly. Only open 1 credit card as doing more may hurt your score.

Raise your Credit Limits – Call your existing card companies and ask for your limits raised. If you’re not at 100% credit utilization, it’ll be helpful to get your limits raised. Even if it’s just a 10% increase, It’ll help your overall report health.

Become an Authorized User – This one is a little tougher to do. You’ll need someone who is in good credit standing. They’ll add you onto their existing credit card accounts. You’ll be provided a card linked to their account and responsible for charges spent. Family members and Close friends are going to be the people you ask. Understandably, It’ll be difficult convincing someone to add you, so don’t take it personally. Becoming an authorized user can cause a boost in score up to 50 points!

TIP: Don’t use the card when you get added. Shred it so you won’t have any temptation.

Leveraging your credit is important to getting the most out of your money. Hopefully with these 4 hacks, you’ll get the score improvements that you need. The usual advice applies, don’t overspend with your new increased credit limits and pay your bills on time! Many people have success using the autopay feature to eliminate late payments. Feel free reach out to us and let us know how this has benefited you!