How to Fix Your Credit Now
Bad Credit Can Affect Your Life For YearsTo begin to fix your credit, it can seem like a daunting task. Where do you start? What do you do? Is it even possible to fix your credit at this point? These are all questions that probably crossed your mind at some point recently, but you’ve ignored your credit (and more than likely for far too long). At Fox Title Loans, we don’t do credit or background checks when offering our car title loan services because we know bad credit can affect you in a lot of different areas in life, and getting a loan from us shouldn’t be one of those places. Although our car title loans are catered to you, you shouldn’t be suffering from bad credit in general, so we’ve come up with a two quick tips to fix your credit and get you back on track!
Two Tips on How To Fix Bad Credit
Look at your past due accounts: An obvious first step for most, but the scariest step nonetheless. Payment history impacts 35% of your credit score. With such a big chunk of your credit score being factored in by past due accounts it’s imperative to take a look at those accounts now to figure what the exact payments are to make them current. What’s worse? Creditors will charge-off a delinquent account that has not been paid on time for six months straight. The Balance explains that, “this status will remain on your credit report for seven years from the date you first went delinquent.” Future creditors and lenders will see it in the future when you apply for credit again and having a charge-off makes you a high risk candidate.
Look at your current accounts: Another huge factor (just slightly under payment history at 30%) is your credit utilization. Here you’re goal is to make sure that you haven’t maxed out your credit cards, then you look at what the credit limit is and try to pay if off within 30% of the credit limit (although paying off the balance completely would be more ideal). Some creditors suggest that having a balance that’s below 10% of your credit limit will look even better than settling for keeping it around 30%, so keep that in mind. Credit.com is a great resource to answer a bunch of questions you might have.
Here’s a breakdown from them of how long it takes to repair your credit depending on the issue:
• Late payments: 7 years from the late payment date
• Foreclosures: 7 years
• Collection Accounts: 7 years and 180 days from the date of delinquency on the original debt
• Short Sales: 7 years
• Bankruptcies: 10 years from the filing date; 7 years for Chapter 13 cases
• Repossessions: 7 years
• Judgments: If the judgment has been paid, 7 years if unpaid, potentially longer
• Tax Liens: 7 years after they are paid
• Charge-Offs 7 years from the date the account was charged off
Remember your credit can affect you in various ways, from renting an apartment to getting a cell phone provider, leasing a vehicle, or taking out a mortgage. If you haven’t been taking your credit seriously, now is the time! And if because of bad credit you can’t take out a loan, consider taking one through us. We’re offering Los Angeles car title loans, which also include commercials vehicles and trucks. Call now and we’ll get the conversation started at 818.646.0711