Improving Your Credit
How Can I Improve My Credit?
If you have a lower credit score than you would like, you CAN do something about it. Whatever the reason for your current credit woes (whether it is misuse of credit, failure to pay bills, illness, unemployment), it is important to take steps to improve and maintain it. It takes work to rebuild your credit rating, but it can be done and it’s well worth the effort. Depending on how serious your past and present credit problems are, it may take time and patience to achieve good credit, but we are here to assist you. Following these tips:
1. Pay bills on time.
With a Blue Star Pre-Paid Debit Card you no longer need credit in order to get credit!
The most important rule for maintaining good credit is to pay your bills on time. How can I get credit for paying my bills on time? Start with bills you already pay, like your mortgage/rent, cell phone bill, electric bill, auto insurance and others. Use your Blue Star Pre-Paid Debit Card to pay these bills and then you make these payments we will report them to the credit bureaus. You will start to build a positive credit profile with bills you already pay. As your credit file grows, you’ll qualify for new credit offers and better rates.
2. Correct mistakes.
Your credit is a reflection of the information in your credit report. If your credit report contains negative information, it will negatively impact your credit regardless of whether or not the information is accurate. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan.
3. Use credit sparingly
Generally, you do not want to spend more than a third of your income on all debt. Use your Blue Star Pre-Paid Debit Card to pay your bills so that you are not going into debt and are still getting all the advantages of having your bills reported to the credit bureaus.
What is a Credit Report and Credit History?
A credit report is a record of how you have paid your credit card debt and other loans. A credit report shows how much debt you have, if you have made your payments on time, or if you have not paid back some loans at all, creditors use this report to decide whether you qualify for a loan or credit card, and landlords, employers, and insurers can base an offer for an apartment, a job, a policy on this information.
Credit reports contain the following information:
• Social Security numbers, current and previous addresses, nicknames, spouse’s name, year of birth, plus current and previous employers;
• Records of loans, credit cards, bank accounts, and retail store accounts;
• Public information on bankruptcy, tax liens, or legal judgments against you;
• Names of people who have obtained copies of your credit report within the last six months (two years for employment purposes).
You can get a copy of your credit report by contacting each of the three main credit bureaus. A credit bureau is a private record keeping business that maintains information about and how you use credit to pay your bills. Since reports may vary from bureau to bureau and errors may exist in one report and not another, you should get copies of your report from each credit bureau.
Equifax information Services, LLC
www.equifax.com
Experian National Consumer Assistance Center
www.experian.com
TransUnion Consumer Disclosure Center
www.transunion.com
Credit reports are often accurate; however, errors do occur occasionally. It is important to review your credit report at least once a year for errors or outdated information that can affect credit scores and your ability to qualify for a loan at a competitive rate. It’s relatively easy to correct errors and we can help. Simply enroll in the Blue Star Credit Repair Program and we will assist you in correcting errors that might exist on your report. At Blue Star we are committed to helping you obtain the credit you deserve.
How Much Will My Score Improve?
No one can predict credit score improvement. It varies according to the credit scoring model being used and the purpose for which the lender is requesting the information. Every point counts and adding timely payments can go a long way to enhancing valuable scoring information.
How Long Does It Take To See Improvements in My Score?
Usually, you can see, for example, your first rent payment on your credit report within 30 days of the verification of rent by our service. This means that depending on the reporting cycle, this information may appear no later than 60 days from the time you sign up for your card.
Will My Landlord Let Me Report My Rent?
Your landlord likes to see your rent reported to the credit bureaus. First, they know that you are concerned with paying your rent on time. Second, they know that by reporting your rent they are helping you to a better future. Third, they know that by reporting your rent, and those of others, it makes the verification process of future rental applicants easier and more trusted for them. Everyone wins.
What Do I Have To Do To Get Started?
All you have to do is keep doing what you are already doing – paying your bills on time - and sign up for your Blue Star Pre-Paid Debit Card. That’s it. Use your new card to pay your bills and we will take care of the verification and reporting.