How To Fix Your Credit in 2020

by Credit Faire January 27th, 2020

We finally made it to 2020. If you’re starting to evaluate where you’re at financially and consider what the next ten years will look for, you’re not alone! Whether it’s a house, a new car, a dream vacation, or maybe even continuing education – your credit score will likely come into play. 

According to the FICO credit scoring model, a good credit score is anything above 670. Scores above that range can give you access to better loans or credit card options with better interest rates. However, you should always be striving for the maximum credit score of 850. 

Remember that you’ll likely have many different credit scores available to see online, due to the various ways your score is measured by different models. Here we give you a couple of different ways to improve and even completely fix your credit in 2020. 

5 Easy Things That Will Fix Your Credit in 2020

Especially if you’re young and just starting out building a career, or maybe just have a weak credit history, it’s probable that your credit score is in the poor to the fair range. A low credit score could affect the rates you get on a home loan, whether or not you get approved for a place to live and more. Long story short, it’s important that you’re taking steps to improve your credit score.

If used correctly and in conjunction with these other tips, a personal loan with Credit Fair-E can boost your credit score. Your score will get higher with every piece of positive activity that gets posted to credit bureaus. There are a variety of different methods to ramp up your score faster, and that includes personal loans and credit scores.

Limit Your Debt to Income Ratio When Borrowing

A really crucial component in your score is how much debt you have compared to your credit limit. This is called your credit utilization ratio. This new year, try to make it a goal to reduce any high-interest credit card debt first since that likely is costing you more money in interest than maybe an auto loan would. When you decrease your credit card balances, it shows potential lenders that you’re responsible with credit. Experts suggest keeping your credit utilization ratio below 30% of your credit limit. 

At Credit Fair-E, we have a process to make sure we only give what we know you can payback. Personal loans can be a great way to help improve your credit, but we recommend borrowing the absolute minimum you need to meet your goals. Smaller loans will have smaller monthly payments. No matter what, you want to limit your debt to income ratio.

Keep Making Payments on Debt

Maybe it’s too obvious, but it’s really important to keep making payments on the debt that you have. Even if you do get a small personal loan and get a little caught up, make 2020 the year you don’t let them get behind again.

We also recommend that you don’t stop using your credit cards altogether. Keep using them but pay them off as quickly as possible. Start establishing good credit habits and increase your score and help you stay on track. 

Create a Budget – And Stick To It!

It’s really important that you know your budget. Sit down and establish how much money comes in and out every month. Having a budget in mind and knowing where your money is going can help you make smarter money decisions.

Take time this year to create a budget and give yourself a plan for how much to save and how much to spend. This can help you make better decisions when you’re tempted to use a credit card. Luckily, with Credit Fair-E, we only give what borrowers can repay. We make sure the payments line up to your budget.

Set Up Automatic Payments

When credit bureaus are looking at how to score your credit, they look at payment history first. You can help protect your score and avoid the penalties that come with a missed payment by putting all of your bills on autopay. First, make sure that you have enough money in your checking account to cover each bill each month so that you can avoid overdrafts. When you know that you’re making on-time payments each month automatically, you won’t have to worry about sudden score dips.

Fix Your Credit Score with Credit Fair-E

At Credit Fair-E, we make sure our process is easy to follow and transparent every step of the way. It’s important to us to make sure that you know what you’re signing up for. We’ve made it our mission to educate our clients and help them get on a better path to financial health.

Ready to fix your credit score in 2020? We will make sure you’re able to repay your loan according to your pay cycle. Plus, once your loan is approved, we will set up some payment reminders to help you stay on track.

Please reach out to our team of experts at Credit Fair-E if you have any questions or concerns. We want to help you fix your credit score as quickly as possible. Financial security is what we do, so let us answer your questions and help you work towards a better score and a more healthy financial future.

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