Many people don’t stop to consider their credit score feedback until they’re trying to buy a house or a car for the first time. Suddenly, a number that didn’t exist in any sort of meaningful way ends up being how they determine the houses you buy and the cars you can drive! While this sudden realization may jog people’s awareness, many end up stuck in the cycle of bad habits that they created. In other circumstances, there was nothing that could be done about the scenario people found themselves in.
The importance of a good credit score
College kids without resources never realized how dangerous those initial credit cards were, and it wasn’t as if they had any economic options anyway. Others suffered through layoffs and downsizing and had no choice but to but to default on their mortgages because the money just wasn’t there. Then there are those who went through complicated divorces and ended up with poor credit through no fault of their own. Whatever the reason, there are plenty of innocent ways to end up with a bad credit score.
The economic problem that surrounds our world is beginning to resolve, allowing for people to once again stop worrying exclusively about the present and look to the future. Those who had credit score debt that were wracked by issues and blemishes now have the chance to start looking at fixing the problem. People such as these may be wondering how to get their score back on track in a hurry. The sad truth is that it will take a lot longer to repair a credit rating that it ever took to break it.
While quickly paying off your balances can give the numbers a quick boost, this improvement will be minor at best if you have outstanding debts. Even without such debts, you may notice that the changes aren’t exactly as high as you might have hoped. The reality is that most large changes occur over time, as the credit bureaus track tendencies, not simply what you’re doing right now. As such, it’ll probably take more time than you are comfortable with to be seen as anything but a risk in the eyes of TransUnion, Experian, and Equifax.
Raising a credit score
If your debts are larger than you can chew on, you can consider bankruptcy. This is by no means a quick, easy or cheap credit fix. Any lawyer is going to charge you over a thousand dollars to handle this on your behalf. It’ll take seven years for the mark to vanish off of your credit history, and bankruptcy. While that may seem like a long time, there are upsides to this. In many cases, it could take much longer to acquire the extra capital required to pay off those outstanding debts, and then return your credit rating to a healthy state.
Bankruptcy is only truly a viable solution if repaying your debts and restoring trust in your name will take substantially longer than six to seven years, so make your choice accordingly.
When staring down the barrel of a low credit score, it can become easy to get frustrated or hopeless. Keep in mind that there are solutions, but they just take time. Don’t fall into the trap of thinking that there are quick fixes to your credit rating because there really are none. All you can do is make sure that there are no problems from this point forward using credit repair secrets.