We recently sat down with Arnita Johnson of Luxurious Credit for an exclusive interview on the importance of establishing and maintaining good credit.
Arnita says the 4 things that tend to hurt our credit scores the most are:
- Late payments
- Collection Accounts
Anything derogatory, such as late payments, collection accounts, charge-offs, repossessions can hurt your credit score. I think the misconception about credit is ‘My credit isn’t that bad’. Well, that really is no such thing as ‘that bad’. It’s either good or it’s bad. Now of course, [newer] information hurts the credit report more [than] older accounts. But late payments, I would say, hurts the credit the most especially if they are new. The idea of building your credit score can also have an impact for the future of your kids, especially when it comes to life insurance. A higher score will result in lower rates, which means when it comes to investing a large amount of your money into a car or a house, you won’t need to worry about any financial pressure. You’ll also be able to leave a decent amount of money to your kids if anything was to happen to you and you were no longer here to take care of them. With this being said though, there are ways that you can help build your credit score before you start looking into sites like https://små-lån.com to help your financial situation. It’s not the end of the world. Pretty much everyone goes through financial hardships, so it is important to remember that everything will be alright in the end, even if it doesn’t feel like it at the time. They will then be able to use this money to invest in their future and the cycle will hopefully continue. There are many ways that you can help to build your credit score.
Lenders are focused on what you are doing now. If they’re seeing that you have late payments now, then that is definitely going to give them [the impression] that something is going on now that you cannot pay your bills on time.
For people who have severely damaged credit, Arnita says there are three things that you can do to start the credit repair process.
- Pay your bills on time.
- Dispute any inaccurate information.
- Apply for one or two new secured credit cards.
Once your credit becomes severely damaged, you definitely want to do something about it. It may mean looking at ways you can generate more income. Some do this by potentially getting an equity release if they are over the age of 55. Going to https://www.keyadvice.co.uk/equity-release/calculator might show you how much you could receive.
[This means] reestablishing your credit and paying your current bills on time while that inaccurate information is being challenged with the credit bureau. I’ve seen severely damaged [credit]. I’ve had severely damaged [credit], so it is definitely repairable. You just have to start somewhere.
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