Credit scores are used to determine your financial worth, and if you're struggling with a low score that's not going up then it can be frustrating. Fortunately, there may well have been at least one logical explanation for this phenomenon - like high balances or limited history- so read more about why yours has frozen in place plus what we recommend doing about these freezes!
Top Reasons Your Credit Score Isn’t Increasing
1. You've Missed Some Payments
Missing a payment can be costly. Not only will you have to pay a late fee, but your credit score could take a hit, too. This could make it difficult to get approved for a loan or even rent an apartment. So, if you've missed some payments, it's important to take action right away.
2. Your Debt Balances Are High
If your debt balances are high, you're not alone. In fact, the average American household has over $15,000 in credit card debt. While it may seem daunting to pay off such a large balance, there are steps you can take to make the process more manageable. By creating a budget and following some simple tips, you can begin to get your debt under control. So don't despair - help is on the way!
3. You Have a Limited Credit History
You have a limited credit history if you've never had a credit card, car loan, or personal loan. Or, if you have, but your oldest account is less than three years old. This can make it hard to get approved for new credit products. Here's what you can do to improve your chances of getting approved despite having a limited credit history.
4. You've Submitted Too Many Credit Applications
It's no secret that when you apply for credit, lenders take a look at your credit history. Too many applications in a short period of time can make lenders suspicious, and they may decide not to extend your credit. So, before you submit that application, be sure to consider how many credit applications you've submitted in the past 12 months. If it's more than one or two, give yourself some time before applying again. That way, you'll avoid any negative impact on your credit score and increase your credit score chances of getting the credit you need.
5. You Only Have One Type of Credit Account
You only have one type of credit account. That's right, just one. So if you're thinking about diversifying your credit portfolio, think again. Having multiple types of credit accounts can actually hurt your credit score. Here's why: when lenders see multiple types of credit accounts on your report, they may view you as a higher-risk borrower. They may also think you're trying to hide something or that you're overextended. So before you open up another line of credit, take a close look at your existing accounts and make sure they're in good standing. Otherwise, you could be doing more harm than good to your credit score.
6. A Creditor Has Incorrectly Reported Account Information
If you're a creditor, it's important to know that you can be held liable if you report incorrect information about an account to a credit reporting agency. In fact, the Fair Credit Reporting Act (FCRA) specifically states that creditors must take reasonable steps to ensure the accuracy of the information they report. So if you're found to have reported inaccurate information, you could face some serious consequences.
Get Help Improving Your Credit Score with Credit Repair Ease
Your credit score is one of the most important numbers in your financial life. A good credit score can help you get the best interest rates on loans and credit cards, while a bad credit score can make it difficult to borrow money at all. If your credit score is low, you may be wondering how you can improve it. Credit repair ease can help you improve your credit score by working with you to remove negative items from your report and improve your payment history.
Call on (888) 803-7889 today to learn more about our services and how we can help you raise your credit score!