Are you having credit card issues like credit report and credit score problems and wondering how to fix them?. Here we bring you four common concerns and how to get them fixed.
Credit Card Issues (High Credit Balance)
You can have credit for a number of years, pay your bills on time, and still have a low credit score. This may be because your balances are too high. In case any of your credit card balances are routinely over 75% of your credit limit this is not a good sign to the credit scoring system and it will significantly lower your credit score because it is a sign that your income is in jeopardy and you would not have enough money to pay off what you owe. With this, you would be considered a greater risk to the lender.
Fix it
To fix this, keep your balances below 50% of their limits, even when you are collecting points.
Pay off your cards every month and avoid carrying a balance at all.
If you currently have a high credit card balance, try to get them paid down to below 75% of your credit limit.
Immediately you take the above-mentioned steps, your credit score will improve.
Credit Card Issues (Late Payments on your Credit Bureau)
In case you have a lot of late or missed payments on your credit report, there’s no legal way of fixing your credit score quickly.
Fix it
To fix this, over the next several years pay your debts on time as agreed.
As you steadily make your payment on time, over the next few years, your credit score will improve and the record of each late payment will be removed from your credit card report 6-7 years from the date of the late payment.
Late Payment on Your Credit Report
Having one or two late payments pinned to your credit report is no big deal as mistakes are bound to happen from time to time and sometimes things get missed or reported incorrectly despite your best efforts. Since you have a good credit history that spans for years, one or two late payments may not really change anything. But be careful not to allow it to happen often so as not to affect your credit score.
To Fix This
If you are the type who pays your bills on time, and can’t figure how the mistake happened, request a free copy of your credit report once every year to check up on your credit score regularly.
Credit Card Issues (Collections on Your Credit Report)
If you have unpaid collections reporting in the public records section of your credit report, your credit score can also be affected. These collection items include unpaid parking tickets, speeding tickets, driving fines, cell phone bills, and utility bills.
To fix this
The only advantage here is that once you pay off these bills, you can ask the creditor to remove their collection notice from your credit report and many of them will oblige.
Get the creditor to agree in writing before making the payments.
Then follow through with making the payment as agreed and ask them to follow suit.
If one or two of these collections were the cause of your credit score drop, your credit score will instantly bounce back once the collections are removed.
Note, other unpaid debts that you incurred as part of a formal credit arrangement like credit cards, loans, and line of credit will not be immediately removed from your credit report once they are paid in full.
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