What to Do If Your Credit Score Is Low

With a million things to keep track of in our lives, the last thing we want to think about is our credit scores. We realize that while there are helpful tips to keep up your credit score, there is the occasional crack we slip through. However, if your credit score is already low, there is a ladder to get out of the hole.

Fixing Credit Utilization Ratio

A simple way to help to steer away from a low credit score is by fixing your credit utilization ratio. If you find that your credit utilization ratio is pulling down your credit score, there are a few ways you can avoid it. One way is by paying a little extra each month to cut down your credit card balance. You can also contribute to diminishing your credit utilization ratio by asking for an advancement on your credit limit, this is helpful when trying to avert from spending over or close to your limit. Another huge key to keeping up your credit utilization ratio is by setting reminders to assemble balance alerts, this is a simple and easy way to stay on top of payments.

Limit Credit Applications

There is a limit to how many credit cards can be under one’s name, usually, the maximum is five which includes personal and business credit cards. Different credit card companies generally have similar guidelines and rules but it varies for each company. If you go over these limits, there are fines you have to pay. The best way to dodge this is with a very straightforward solution, set a limit and don’t go over. The more credit cards you have the harder it is to keep track of. You want to avoid paying multiple fees for exceeding your limits.

Remove Debt Collections

When creditors notice that you haven’t maintained proper upkeep of an account, in other words unpaid, they will send it over to a debt collector. The debt collector will then begin to send you letters and call you continuously until you pay it off. They now ultimately have hold of your account. It is their job to put the account on your credit report to show that you have overdue debt. A way to remove this is by negotiating with your debt collector in a form of payment. Once you have made the payment, the debt collector will delete the entry of outstanding debt. Be sure you have the agreement in writing to fall back on to ensure any future dilemmas and proof of payment.

Bank of the Lowcountry is here to help in any credit situation. Let us help you to gain control of your credit score now and increase it for years to come! Contact us through our website or give us a call at (843) 549-2265.