Do you have a bad credit score? If you do, we’re sorry; we know how difficult life gets in this scenario. From renting an apartment to financing an investment, all kinds of tasks become tremendously challenging.

Before you start beating yourself up about it, remember that you’re not alone! There are millions of Americans who have poor credit ratings and confront the same challenges.

According to statistics, 53% of Americans have been rejected for a credit card, loan, or car due to poor credit. Also, nearly one in two people don’t pay off their credit balances each month.

Contrary to popular belief, a poor credit score isn’t always a result of irresponsible behavior or poor spending habits. Here are some potential reasons behind your bad credit score:

Late payments

It’s critical to pay off your monthly credit balance in a timely manner to maintain a good credit score, and the key word here is “timely.”

Even if you clear your monthly balance, but do not pay within the deadline, it will hurt your credit score.

Therefore, you must ensure that you pay before the payment is due. If you often forget to pay, automate the payment process.

The high credit utilization ratio

Some people only keep a single credit card to avoid accumulating debt. While this is a good strategy, it can result in a high credit utilization ratio, which can impact your credit score.

For instance, if you have a $1,000 limit and a statement balance of $500, your utilization is 50%, which is very high and can reduce your credit ratings.

There are multiple ways to reduce your credit utilization, make more frequent payments, get your credit limit increased, or apply for a new credit card.

Error in credit reports

Sometimes, your credit report contains charges that don’t belong to you. This can negatively affect your creditworthiness, so you must keep a tab on your credit report.

A study showed that around 26% of people find at least one error in their credit reports, which can hinder their ability to get loans and negotiate reasonable interest rates.

Also, identity thieves may have used your card information to make fraudulent transactions, leaving you with a delinquent account and a poor credit score.

Hence, it’s highly recommended that you frequently check your credit report from time to time and fix errors as they occur.

READ: How Long Do Negative Items Stay on Your Credit Report?

What should you do?

3 Questions You Need To Ask Your Credit Card Issuer

To improve your credit score, you must first identify the factors that are contributing to a poor credit score and develop a methodological approach to address them effectively.

Some of them might be obvious, such as non-payments and high balance on your credit card, but other factors might not be as apparent to you.

Hiring professional credit repair services is your best bet to work your way up to a good credit score so you can make your financial life much easier.

READ: 3 Signs of a Reliable Credit Repair Company

 

If you want to hire a credit repair specialist and get your finances in order, get in touch with us today! Masters Credit Consultants provide professional credit restoration services to individuals with a poor credit rating. To find out more, call us at 1-844-620-8796 or email at info@masterscredit.com