While you probably don’t think about your credit score on a daily basis, when you are ready to make a significant purchase – like a car or a home, this number becomes crucial, as it can determine whether or not you qualify for the best possible deals and interest rates.
Correcting errors on your credit report and paying down debt are two steps people can take to boost their credit scores and their overall financial standing.
If your credit score could be better than it is right now (which is the case for most people), there are some specific steps you can take to start improving it – and to keep it at a good or even great number.
Here and in a few upcoming parts of this blog, we will highlight some of the ways in which you can improve your credit score. If, however, your financial issues are more significant than a poor or mediocre credit score and you need some professional legal advice regarding your debt relief options, don’t hesitate to contact Colorado Bankruptcy Lawyer Jon B. Clarke.
First Steps to Improving Your Credit Score…
Some of the initial steps to take as you work on boosting your credit score include:
- Correcting errors on your credit report – Just because you pay off debt, you pay your debts on time or you get some debt discharged through bankruptcy does NOT necessarily mean that your credit score will accurately reflect this information. In many cases, credit reporting agencies and creditors themselves can make mistakes, and these mistakes can have significant impacts on your credit score.
As a result, take some time to carefully review your credit report and check for any possible mistakes. If you notice errors, contact the creditor associated with these errors – as well as the credit reporting bureau – to notify them of the mistakes.
In most cases, you will be required to send an official letter explaining the mistakes, along with evidence of the correct information, to the creditor and/or credit reporting bureau. At that point, the creditor/credit reporting bureau will likely conduct its own investigation (which could take weeks or months) and then notify you of its findings (which, ideally, support your contentions of the errors and get these mistakes corrected).
- Focusing on paying down debt – While a number of different factors can impact your credit score, one of the primary impacts comes from simply having too much debt (relative to your income). Reigning in your debt-to-income ratio is one crucial step to take to boost your credit score (and your overall financial standing).
As you focus on paying down your debt, it’s usually the best idea to start with debt that is associated with the highest interest rates (which, in many cases, involves credit card debt). Do your best to free up as much extra cash as possible so you are able to pay more than the monthly minimum payments on this debt.
Don’t miss the upcoming second part of this blog for more tips and information regarding how to improve your credit score and your overall financial standing.
Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.
