Credit scores are similar to a student’s GPA, which depicts how well a student is performing in school. Likewise, a credit score shows banks and creditors how diligent someone is when it comes to paying their debts back.
While you cannot necessarily pay to fix credit, you can learn the basics of credit, use the right tools and use money as a way to boost your credit score. The process of increasing your credit score takes diligence and time. With our guidance and tips, you could see a drastic increase in your credit score!
Let’s explore if you can pay to fix your credit or what you can do to improve your credit score overall!
How to check your credit score
It is very important to check your credit score on a regular basis, but balance is key. Checking too often isn’t necessary, but some banks make it possible for you to get an estimate of your credit score at any given time.
The best way to check your credit score would be using AnnualCreditReport.com which lets you request a free, detailed credit report once per year. This will also help to verify the validity of your credit score and make sure that there are not any discrepancies.
7 ways to repair your credit score
Repairing your credit score is mandatory because so many aspects of your life will rely on a good credit score. If you’re wondering how to raise your credit score, keep reading!
Monitor your credit
Monitoring your credit on a regular basis is essential. It is easier than ever for our identity to be stolen by anyone, even people who live in a completely different part of the world, so protecting our personal information is key.
By monitoring your credit score, you will be able to quickly spot discrepancies or errors and report them immediately. By tackling fraudulent behavior sooner than later, you can protect your credit score and avoid being at fault for decisions that scammers made in your name.
Keep a close on your credit score when you sign up for a MoneyLion Credit Builder Plus membership. You’ll have access to 0% APR cash advances, 24/7 credit monitoring, and our financial heartbeat feature!
Dispute incorrect information
If you see instances of identity theft on your credit report, you need to dispute those errors by filing the appropriate paperwork immediately. Make sure the errors are actual errors before you report them, as it’s not good to make false claims regarding your credit score.
Create a payment plan with creditors
Almost all of us have had a difficult time paying our bills at one time or another in our lives. It can be very stressful to fall behind on payments and find yourself in a position where you cannot pay your creditors back. Creditors are very understanding people, so reach out to them if you need to set up a different payment plan.
You can always give them a phone call and explain the situation so they know where you’re coming from. They are more than willing to work with you. They don’t want to make your situation worse, and they would much rather have you pay them back, so you can work together to come up with a resolution that works for both parties.
Don’t close accounts that are in good standing
Accounts in good standing are the backbone of your credit score, so don’t close them. If you have some accounts that are defaulted and some that are in good standing, work to resolve the ones that have defaulted and hold onto the good standing ones.
Avoid large credit purchases
It’s normal to want to spend your money on luxuries, like the newest and nicest car in the lot, but can your credit score handle it? What happens if you lose a portion of your income after purchasing the luxury? Will you still be able to pay it off on a monthly basis?
If you have a lower credit score, then making big purchases without thinking them through could cost you a lot more than you think. Also, these large credit purchases also require the creditor to check your credit to ensure that you have a good score. Your credit score will drop with each hard credit check, so minimizing the number of hard inquiries is smart.
Expect to take your time
Is trust built overnight? No. Trust takes time. It also takes a lot of effort for someone to believe that they can rely on you when they need to. Similarly, creditors need to be able to trust you with their money and trust that you are going to pay them back. When they look at your credit history, they’ll want to see good repayment habits across the board.
Don’t close your oldest accounts
Your oldest credit account should be treasured and cherished. As such, don’t close it because it is the backbone of your credit score. Your earliest account will help you get your credit score in good standing in a shorter time frame.
Should you pay a credit repair company?
There are companies that you can pay to fix credit. These companies specialize in credit scores, advice on how to increase your credit, and how to do it fast. However, you have the ability to use those same tips and tricks on your own. As long as you’re willing to put in the work and follow these tips, you can tons of money by avoiding their services.
One thing credit repair companies are good at is determining the exact reasoning behind why your credit score isn’t where you want it to be. Paying a credit repair company may be the best option if you need to get your score in better standing in a very short time frame.
Credit score improvement made easy!
Be a good student and make sure that you keep tabs on your credit report. Be sure to understand what affects your score and why you have the score you do. While you can pay to increase your score, there are better ways to increase your score so that you can start getting approved for loans and credit cards.
Opening a MoneyLion Credit Builder Plus account is one way to get additional funds, create a savings account, and potentially raise your credit score by up to 27 points within 60 days!
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Credit Builder Plus membership ($19.99/mo) unlocks eligibility for Credit Builder Plus loans and other exclusive services. This optional offer is not a Pathward product or service. A soft credit pull will be conducted which has no impact to your credit score. Credit Builder Plus loans have an annual percentage rate (APR) ranging from 5.99% APR to 29.99% APR, are made by either exempt or state-licensed subsidiaries of MoneyLion Inc., and require a loan payment in addition to the membership payment. The Credit Builder Plus loan may, at lender’s discretion, require a portion of the loan proceeds to be deposited into a reserve account maintained by ML Wealth LLC and held by Drivewealth LLC, member SIPC and FINRA. The funds in this account will be placed into money market and/or cash sweep vehicles, and may generate interest at prevailing market rates. You will not be able to access the portion of your loan proceeds held in the credit reserve account until you have paid off your loan. If you default on your loan, your credit reserve account may be liquidated by the lender to partially or fully satisfy your outstanding indebtedness. May not be available in all states. Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see Investment Account FAQs and FORM ADV.
Credit score improvement is not guaranteed. A soft credit pull will be conducted that has no impact to your credit score. Credit scores are independently determined by credit bureaus. Data was sourced from credit score data from over 147,500 Credit Builder Plus members with an active loan between January 1, 2020, and March 15, 2023. Credit score improvement is not guaranteed. Credit scores are independently determined by credit bureaus. MoneyLion is not a Credit Services Organization. Credit Builder Plus is an optional service offered by MoneyLion.
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