If you have a bad credit history, getting approved for a loan or credit card can be challenging. It may also be hard to find a job or apartment. But don't worry; there are ways to clear your credit history and improve your credit score. The process usually takes several years, but it's worth it in the end. Here's what you need to know about clearing bad credit history.
What Is Bad Credit?
Did you know that one-third of Americans have bad credit? That means they have a low credit score, making it difficult for them to borrow money or get a loan. So, what is bad credit, and how can you improve your credit score? You can follow some essential financial tips which help you manage your credit, and this is not hard, but you need to follow them in a particular manner.
How Long Does Negative Information Stay on Your Credit Reports?
Your credit reports are one of the most important when managing your finances. They contain a detailed history of your credit activity, including any negative information. But how long does this negative information stay on your credit reports? And what can you do to get it removed? Here's a closer look at how different long types of negative information remain on your credit reports.
Five Important Pillars of Good Credit Scores to Clear Bad Credit History
- Payment history – 35% – Always make sure you make your payments on time and pay them in total.
- Amounts owed – 30% – Lower your credit utilization and balances.
- Length of credit history – 15% – That can be tricky if you’re a young adult just starting. If you have old accounts, don’t close them just to use current ones.
- New credit inquiries – 10% – Don’t apply for new credit if you don’t have to.
- Credit mix – 10 – The more types of credit you have the better. Some examples of credit are loans, credit cards, and others.
Is There a Shortcut to Good Credit?
It's no secret that having good credit is essential – it can help you secure a mortgage, qualify for a car loan, and even get a job. But is there a shortcut to good credit? Unfortunately, there is no easy way to improve your credit score. However, by following some simple tips and keeping on top of your finances, you can work towards building good credit history and improving your credit rating. So what are you waiting for? Start working on your credit today!
Another way is to hire a credit repair company like Credit Repace, which can help you manage your credit score, remove negative items from your credit report, credit monitoring, and do much more. That means it benefits you from bad credit and helps you increase your credit history.
Call (888) 803-7889 to clear your bad history from your credit report now!