Chapter 6. Coping With a Credit ranking Score after a Major Problem
Big, bad issues can happen to you - bankruptcies, divorces, law suits, non-payment of taxes. These are big issues that can affect your credit ranking score in as big way. If you have faced a large issue that has damaged your credit ranking, you need to take action fast and work consistently to increase your FICO score:
Tip #25: If you have a bad credit ranking score, establish better credit by taking out credit and repaying it quickly
If you have terrible credit ranking following a bankruptcy or other major economical upheaval, you may need to get back into a a favorable credit ranking score rating by taking out a economical loan you can handle. Make an appointment to see your bank or a bad credit ranking score lender a few time after the issue in question and arrange for a little economical loan.
You should have enough savings to pay for the economical loan before you do this. Pay back the economical loan easily. It will not hugely increase your credit ranking score but it will show lenders that you are having no trouble paying your bills. Obtaining a little economical loan you can repay is part of the slow process of reestablishing a favorable credit ranking score following a big economical issue.
Tip #26: Try properly secured credit ranking if you cannot be eligible for a other types of credit Secured credit ranking is credit or a financial loan which uses something as collateral. In some cases, this could be an asset like a house. In some cases, this collateral could be money frozen in an account by the bank for just such a purchase.
If you need credit following a big issue with your credit ranking score, properly secured credit ranking may be something you can be eligible for. You can use this properly secured credit ranking to reestablish a favorable credit ranking score --so that you will be eligible for a other loans in the future. You may have to pay slightly higher interest if your credit ranking score is quite low, but in the long term repaying this interest rate can raise your credit ranking score.
Tip #27: Give it some time
Many people believe that simply paying off financial obligations will improve their credit ranking score at once. This is not true, unfortunately. If you have experienced a bankruptcy, have been reported to a collection agency, or have had charge-offs, the record will remain on your credit ranking file - even after you have repaid your financial obligations and resolved the issue.
In fact, significant issues such as a bankruptcy will remain on your credi