6 Ways To Avoid A Damaged Credit Score

August 10, 2021 | Emma Frost

avoid a damaged credit

 

A lot of people seem to underestimate the impact that damaged credit can have on their lives. Basically, you need to avoid a damaged credit score wherever possible. Not only can it influence whether you can borrow money for things like mortgages, but some jobs actually require credit checks to ensure that their staff is suited to the position.

 Here are 6 ways – like using a title loan near me – that can help you avoid a damaged credit score.

Remember These 6 Tips To Avoid or Fix Your Damaged Credit Score

1. Pay Your Bills On Time

The biggest hits to your credit score are always going to come from not paying your bills on time. Missing one payment may have a slight hit. Missing multiple payments is going to lead to seriously damaged credit that you are going to struggle to claw your way back from.

Some companies will allow you to pay a few days late without it being reported to the credit agencies. However, you shouldn't really be making a habit of it.

2. Check Your Credit Score Regularly

Mistakes can be made on your credit report. Payments that you made may not have been recorded. Your address details may be wrong, and so on. It is important that you get into the habit of checking your report regularly.

If you do notice that there are any issues on the credit report, then it is vital that you get them dealt with as soon as possible. Most of the time this takes nothing more than a phone call or two to the company that made the mistake. Most people will check their credit reports a couple of times per year.

Also, checking whether you credit score has risen or dropped can help you stay on top of improving your credit score. Awareness plays a big part of keeping your score higher.

For more tips, read our ways your credit score can drop article.

3. Do Not Over Apply For Credit

Each time you apply for credit, there will be a mark on your credit report. This will result in a damaged credit score as if it seems you are struggling with your finances. Even if you do not get approved for credit, that mark is still going to be there for a long time.

If you do apply for credit, then only apply when you need it. In fact, better yet, look for a 'title loan near me' that doesn't have an impact on your credit report if you need a loan to help you with an emergency expense. This is one way to avoid a damage credit score.

4. Do Not Overutilize Your Credit

Once you have credit e.g. credit cards, overdrafts, and so on, then it is vital that you do not spend anywhere close to the maximum amount of credit that has been granted to you. The closer you get, the more it screams that you may have money issues. This can, of course, lead to a damaged credit score.

It is suggested that you never go over 70% of your available credit. If you do, then make sure that you get below that 70% mark as soon as you possibly can.

5. Do Not Underutilize Your Credit

Just like overutilizing your credit is bad, it is also bad to underutilize credit. If you are not using at least 30% of your available credit, then you are going to be dealing with a damaged credit score.

It is often recommended that you close any credit cards that you have fully paid off and are not planning to use. This way you will not have all of that credit impacting your credit score. Although, generally speaking, it is probably going to be best to keep using them and make the payments each month. Regular payments on your credit history are far better.

 

title loan near me

 

6. Look For A 'Title Loan Near Me' For Quick Emergency Money

There will be times where you need to borrow money but you do not want there to be a hit on your credit score. In these cases, it may be worth looking into cash for title online.

With a title loan, you are borrowing money when you use your vehicle’s title as collateral. These loans are not going to be reported to the credit agencies. This means that you do not have to worry about there being an impact anywhere on your credit score.

The great thing about searching for a 'title loan near me' is the fact that these loans are available to those with bad credit. Since the people that tend to be most concerned about having a damaged credit score are those that fall into one of these categories, then a title loan can be an absolute saving grace when an emergency threatens to hurt your credit even more.

If you have bills that need to be paid, then start looking for an ‘auto title loan near me’. This can help to prevent missed bills from sending your credit score down. If you need money now and you want to avoid a damaged credit score, then head to Carolina Title Loans, Inc. for help. Those that own their vehicle could be approved for a loan in as little as thirty minutes.

Avoid Damaging Your Credit Score Today

When it comes to your credit, it is definitely important for you to remember these 6 tips. These tips can help you avoid completely damaging your credit score – which would really affect your other areas of life. And when an emergency is hurting your credit score, turn to a title loan near me. Fill out our online form to get started.