Your credit is fundamentally the level of trust prospective creditors use when deciding to approve your loan or not. You could fall from the worse credit if you don’t take care of it. On the other hand, having an outstanding credit would mean banks and credit companies are after you and would beg you to borrow from them.

A record of past failures in payments or credit agreements would make your credit low. With this, your chance of getting approved for a loan will also become low. If you have a bad or low credit score, this might mean that you are not paying your obligations on time or not paying them at all.

Fixing your credit is not hard. Improving or boosting your credit score does not take a long time. For a little help, here’s how to repair your credit and boost your credit score, as well as your capacity to loan on rates you can afford. Read on!

FICO Score

All credit bureau equates a Fair Isaac Corporation score based on the credit report presented. The FICO created software to calculate the credit scores; thus, the name. The computed scores would be the median for a lenders decision to either approve and grant the borrowers loan or not.

Several companies like auto lenders, credit card companies, and mortgage lenders look at borrowers in different perception such as their demands. So, to serve this, a dozen of FICO calculations and variations exist. Credit scores are calculated in the range of 300 to 850. Thus, considering 650 to 670 a low rating, and 650 and lower as increasingly lousy credit.

Having several late payments, negative records, or a loan default on your credit would eventually decrease your credit score. For instance, if you had any bills that have gone over to collections such as unpaid medical bills. The agency could report your delinquency in the credit bureau even if the medical institution doesn’t.

Bad credit usually results when borrowers face a financially rough spot. Therefore, prompting many adverse events in a short time. If you want to know what loan types you can avail with bad credit, read CreditNinja’s Bad Credit Loans post.

Review Your Status and FICO Scores

If you are sure that you stayed on top of your payments and finances, you may have a clear idea of your credit score. You’d know if you have been paying late or have any unsettlement that goes beyond thirty percent of your remaining credit.

Did you recently get a notification that your credit card interest went high or you had a credit application denied? If yes, then it could mean your credit is going downhill.

Make sure you review your FICO credit score and get a copy of the actual credit report. You might find out that the credit bureau did not report your account having a positive payment history. Thus, by reviewing your credit report and scores, you can make sure that the amount stated is correct and valid.

The Downhill from Poor Credit

If you have bad credit, a lender would most likely doubt your ability to pay, and this means a low approval rate. In this sense, if you are offered or approved for a loan; lenders would usually amplify their interest as a way to compensate for their trust.

If you have a bad credit score, take note that it is not only your credit card or loan approval that is on stake. Most insurance companies consider when offering an insurance rate. Also, cell phones and utility companies charge a security deposit for applicants with poor credit. Moreover, if your credit does not improve, landlords might also ask for a higher security deposit or worse turn you down.

Repair Your Bad Credit

Bad credit does not and should not last forever. You can take simple steps to make your credit better. Make sure to focus first on all your negative information, pay them off one by one. If you have any disputes, make sure to inform the credit bureau to clear the negative amount and repair your bad credit

Also, the severe impact of most negative credit marks lessens over time. So sometimes waiting and giving it ample time to heal itself is best. Make sure not to add any additional negative credits and make it a point to pay on time. Consistent on-time payments will help you repair your bad credit faster.


Your credit score impacts your whole life, so improving or boosting it is the best technique in having a good score. There are a few ways to improve your credit and doing these steps at a time would pave a way to a better credit score.

If you have bad credit scores, it does not entail automatic disapproval of loans. But, it impacts the decision of the lender severely. Be sure to improve your credit, and a better approval rate will be noticeable.

Author Bio

Tiffany Wagner is a content marketer, specializing in financial, technology, and health topics. When not working, she loves doing outdoor activities with her family and friends.

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