500 Credit Score and How to Improve It

Credit score is the three digit magic number allotted to you basing on your financial behavior and how well you are paying back the debits that you have taken from lenders and banks.If you are good at paying all the commitments that you have committed on time your credit score will be obviously good.

Having a credit score less than 500 is alarming as you are not officially qualified for traditional refinance on house.The choice that have is hard equity loan which depends on the value of your house but not on your financial status.Thus you can try a equity based lender to get the house refinanced.The other difficult option is the ability to pay large down payment.The other problem is may be you have to pay high interest rate on the loan granted.

The simple solution is getting a secured credit card from any local bank and start using it and paying bills on time.This established good credit history and improve your credit score over the stipulated time.You need not worry that you are spending money to improve your credit score.This money will come back to you and you can happily enjoy the better three digit number, more than five hundred will give you better loan options with lower interest rates.You can even hire a credit adviser to improve your score via different possible options.

1.To repair your credit score first you shall get your credit report free from available three sources by requesting over the inter net.

2.Correct all the data needed to make the score better.You can report closed accounts which may be hurting your credit report and score.

3.Pay down some of your debit.This improve your credit score and also gives better chance to get qualified for the requested loan.

4.Do not close any accounts that you have rather try to spread your debits into different accounts so that it will be distributed over .

5.Use your credit regularly and pay the bills on time which makes your credit history better.

6.You can also take the advice of some expert to make it better.

Any way understand that you are not going to make a sudden jump in your credit score and you need to build it over the time carefully with proper calculations.Improvement of score by 50 once in a quarter is fine and is observed as natural.Having a 700 + credit score gives you head start that you are qualified for all most all kinds of loans and you will be keep getting calls and mails about best offers around you.

You better not apply for new loans when there is issues with credit score.Rather wait for some time to improve it and apply for new loans.You can negotiate with the collection agencies for delayed or part payments with out hurting your credit score.You shall not run away from the truth and face it to make it better.Understand that your score has gone down because of financial irregular behavior and you shall be mentally prepared to correct it.You shall learn the process of credit scoring and who is effecting your magic number.

Avoiding late payments and not using the total credit limit available will definetely make your credit score better.

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