As a rule, it takes longer to rebuild credit than build credit. However, the main steps are largely the same.In this article, you’ll read about the basic steps to take so to achieve a better credit score without difficulty. Also, you’ll know how to get bad credit merchant account instant approval easily.
The extent to which your credit score will be damaged and the time it’ll need to recover are partly based onthe mistake you’ve made and when you’ve made it. If you’ve been late on your payment or missed it, judgments and collections are going to be present on the reports for 7 years.
As for bankruptcy, it can be there for up to 10 years and damage your credit score.E.g., if your score is750, the bankruptcy will make it drop by 100 points.
Simon Prefontaine, a financial planner, says that getting your credit score to a higher level isn’t the only thing to work on. Don’t forget about taking your revenues, ratios, and other things like that. So, depending on what your objective is, you need to have a bigger plan other than just boosting your credit score.
To start, just visit AnnualCreditReport.com where you can obtain your reports for free. Also, you can order them right fromEquifax, Experian, and TransUnion. Now, let’s look at the other important steps you should take:
- Go through the reports to find out if there’re errors. If there’re any, they must be repaired.
- Stick with proper behavior, meaning know your boundaries so as not to damage your score.
- Pay on time. If anything, explain your situation and do your best to pay your obligation.
- When making a payment, don’t wait until the last day comes.
- If you have a specific objective, contact your mortgage specialist who’ll give you more precise steps to follow.
- Better not to close your credit card accounts. Longer credit history will do good to your score.
- Don’t be slow on paying your debt.
- Use a secured credit card.
- Get a small installment loan.
- Pay your student loans (if you have).
- Don’t be an unauthorized user on the credit card of a friend or relative.
- Avoid using prepaid debit/credit cards.
- Try a credit-builder loan.
- If arelative/friend can co-sign your loan/credit card, it’ll be great.
Bad Credit Merchant Account Instant Approval
If your score has gone below 600, you’re going to face certain problems when trying to get approved for a merchant loan. So, be prepared that bad credit will close many doors to you or, e.g., make you pay higher rates.
Thankfully, there’re reputable alternative online lenders that specialize in the high risk space and provide exceptional terms and rates for bad credit merchants. So, with a respectable high risk business funding provider, you can get bad credit merchant account instant approval without challenges.
To sum up, you may think rebuilding your credit is rather intimidating. However, the truth is thatonce you build momentum, you’ll start improving a good credit score. Just turn to a true lending expert that can help you pick up your battles wisely.
Author Bio:As the FAM account executive, Michael Hollis has helped many business owners by using bad credit merchant account with instant approval solutions. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.