Call us now ! Send us an email S Sheridan Rd Tulsa United States

Back to Top

Fighting a Low Credit Score? Steps to Take

bad credit
If you have a credit score that is much lower than you would like it to be, trying to improve that credit score can feel like daunting. However, it does not have to be that way. You can raise your credit score and manage your finances so that you can maintain better credit from here on out.
Get to know some of the ways you can begin to improve your low credit score. Then you can start making the changes you need to make to improve your credit score as soon as possible.

Get a Copy of Your Credit Report

While you may know that your credit score is low, you might not fully understand just why that is. Because of this, the first step you will want to take when you have a low credit score is to get a copy of your credit report.
Your credit report will give you an idea of several factors affecting your credit. Any accounts that you have currently open will be listed, along with their balances and whether or not they are up-to-date. If they are not up-to-date, it will let you know how far behind you are in payments.
You will also have a list of closed accounts and collections accounts as a part of your credit report. Credit reports even include contact information for creditors and collections agencies to make it easier for you to find the companies you need to contact. Essentially, your credit report can act as your guidelines for improving your credit.

Contact Creditors on Open Past-Due Accounts

Many factors contribute to your credit score. However, having past-due accounts is one of the most damaging credit factors. This is why you should contact your creditors with which you have past due balances as soon as possible.
Explain to them the circumstances that led you to fall behind (be honest), and try to come up with reasonable arrangements to get you back on track with your payments. If you're willing to pay your debts and begin making regular monthly payments, more creditors will be willing to work with you to make that happen.
The goal, of course, is to take care of the past-due problem so that your account can be reported as current once again. You may need to make an upfront payment to do that, so have an amount in mind that you can put toward that credit account when you call (even if it isn't much).

Consider Consolidating Your Debt

If you are current on your payments but your credit score is still low, it could be because you have high balances on all of your credit cards and accounts. When this is the case or your minimum monthly payments all together are too much to maintain, you may want to look into consolidating your debt.
Debt consolidation is a process that can occur in a few ways. One of the options is to work with a debt solutions company that will act on your behalf to lower your payments. You will pay that debt solutions company a single monthly payment, and they will pay your creditors on your behalf.
Another option is to take out a loan to consolidate your debt. You will pay off your credit cards and other credit accounts with your loan and then pay a single monthly payment on the loan to pay off your debt.
This technique will have the dual benefit of giving you a more manageable monthly payment and will allow you to reduce your credit card debt.  Having low or no credit card balances will actually increase your credit score. Just make sure to keep your credit card accounts open.
Taking out a loan when you have a low credit score can be a great way to build up your credit as well. You will consolidate your debt and will be able to start a fresh account that you can keep up-to-date with ontime payments. 
Now that you know these steps to take to improve your credit score, it's time to start making these changes. Contact The Loan Lady to take out a loan and consolidate your debt.