Credit Score

Your credit score may change at any time for a variety of reasons. One of these reasons could be that incorrect entries appeared on your credit report. It may be a simple mistake made by the lender or the credit reporting agency, or if you do not know anything about them, it could mean that your identity has been stolen.

In this case, you should contact Experience and the credit provider – such as a lender, a utility company or a telecommunications company, and you should do so as a matter of priority.

A credit score ranges from 300 to 850, where the highest is the number, the better. And the higher the score, the more likely you will be approved for a loan and guaranteed the lowest rates. When you know your score, you will have a good idea of where you are in the spectrum. For example, scores above 720 are considered excellent and would put you in the best position to get the best rates and conditions. On the other hand, scores below 620 are considered mediocre, which means you may have difficulty getting a loan or paying interest a few percentage points higher. Everything in between is about average and the loan requirements will reflect that. To check your credit score this is a very important matter.

How to rebuild my credit?

Here is a list of 10 things you can do today to improve your situation:

Get a copy of your credit report

You cannot start rebuilding your credit if you do not know what points you need to improve. By obtaining a copy of your credit report, you will have a list of the accounts that affect your file and you can start improving them first.

Challenge an error on your credit report

A simple mistake can greatly affect your credit rating. For example, if you find that a payment has been considered “late” when you have made it “on time, you have the right to request that this erroneous information be withdrawn or modified.” Send a letter to the credit reporting agency or creditor by demonstrating that this information is incorrect.

Avoid making purchases with your credit card

By making new purchases with your credit card, you increase the debt ratio between the balance of your credit card and the credit limit available. Thus, the higher your balance, the more your credit score will be affected. Avoid using your credit card by paying cash for a while to rebuild your credit.

Pay your accounts

Your payment history counts for 35% of the credit score. So the longer your payments are late, the more they will hurt your credit report. Pay your late accounts as soon as possible.

Avoid re-applying for a credit card

As long as you try to rebuild your credit, avoid making new credit card requests, because each credit application can affect your credit score.

Leave your credit accounts open

You may be tempted to close an account with which you have had payment problems, but do not do it. Why? Because the age of an account and its credit limit can positively influence your record.

Contact your creditors

Although they are probably the last people you want to talk to, take the time to call them to make arrangements with your creditors. Several companies will prefer to give you more time to get back on track than to send your file to a collection agency.

Pay your debts

The amount of your debts accounts for 30% of your credit score . You will have to reduce your debts if you seriously want to rebuild your credit.

Get professional help

Credit Counselors can help you recover from your financial situation. Do not hesitate to contact them for professional help. The sooner you act, the less likely the situation will become insurmountable.

Be patient

Your credit has not deteriorated in one day, so do not expect to rebuild your credit report overnight. Be patient. Gradually, from month to month, your situation will improve.


Never exceed a debt / credit ratio of 50%. For example, keeping a balance of $ 5,000 on a credit card with a limit of $ 10,000 is a debt / credit ratio of 50%. Lenders consider it acceptable. Be strict in paying your bills. Mortgage, credit cards, electricity bill: all these transactions are recorded in the credit bureaus, so you have to make sure that you pay your bills on time. Do not lose sight of how much you buy on credit. “That’s where we tend to skid,” says Graham. For example, when you lose the notion of why you used a credit card. So, know exactly how much you pay, and exactly when you repay.

You do not have to worry about your debt alone. “Go see a professional, explain your situation to him and tell him that you need a plan to get into the good offices of credit reporting agencies.