As high as 90% of all lending decisions in the United States are based on your FICO credit score. This means if you want to get a loan, lease, or line of credit to buy a vehicle or a home or pay for tuition, your personal expenses, and your business, you should be ready to share your credit score with your lender. With credit playing a big part in big decisions in most people's lives, it's very important that you maintain good or good credit.
In February 2013, the Federal Trade Commission released the results of a comprehensive credit report study, in which one in four consumers had errors on their credit report. Errors on the credit report can lower the credit score, raise the existing lending rates and prevent you from receiving new loans or loans.
When you are in the army, especially if you are placed overseas, your credit score may not be a high priority for you. However, it affects the important financial decisions you will make. Therefore making it a priority and staying on it is very important.
Bad Credit Is Not the End of the World
If you have bad credit or your score has fallen, do not despair. This is not the end of the world. But you may not be able to get a loan, lease or new credit card you want immediately. You have to work for it.
Thankfully you can repair and improve credit, put yourself in a more favorable light for lenders for any credit scenario through discipline and effort. Fixed credit and increased credit score are not instantaneous. No quick fixes. It takes time. Just as losing weight requires consistent effort, increase your credit score as well. (For related reading, see: 5 Difficult Things to Do with Bad Credit.)
The most important decision you will make about your credit is how you manage your credit responsibly from time to time. The first thing you should do is check your credit score. Each year, you are entitled to a free credit report from Equifax, Experian, and the TransUnion. Visit AnnualCreditReport.com for your free annual report. Please order this report so you can check for errors and make sure it is up-to-date.
Check Your Current Credit Report
After you request a credit report from each credit bureau, pay close attention. Check to make sure the information is correct, including the payment listed on your account, their status (open or closed) and your personal information. If you find an error, complete the dispute with them online. Each credit bureau may take some time to review the dispute information submitted online, but you will see incorrect information corrected through your persistence. Be sure to follow up if changes are not made within 30 to 45 days.
Set Up Payment Reminders and Pay Bills on Time
This step can be very helpful because it prevents you from making mistakes. With a payment reminder, you can make timely credit payments, which are by far the most important factor in your credit score, accounting for up to 35% of the score makeup. You may also consider making automatic payments to ensure your payments are made on time. But you still want to make additional payments more than the minimum amount to actually pay off the debt you have. Even though you may have paid a late bill earlier, make sure your payments are on time. It will appear in your account from time to time. Paying bills consistently over time will have a positive impact on reports and credit scores.
Decrease the amount of debt you owe
It takes time and perseverance but it is also very satisfying and can have a dramatic impact on your credit score. Start by no longer using your credit card and then paying them with a payment plan that targets the card with the greatest balance and higher interest rates while still meeting the minimum payout in other accounts.
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