How to Use a Credit Card to Build Good Credit [2019 Guide]

how to use a credit card

If you are like most Americans, you already have a credit card or are planning to get one. However, the way you handle your credit card will have a huge impact on your credit score. If your credit score drops, you will have higher interest rates on your loans. Or worse, you won’t qualify for loans at all. 

That’s why we’ve prepared a guide that will help you learn how to use a credit card so that it increases your credit score. In the article, we will cover the following:

Keep reading to learn more!

The Comprehensive Guide on How to Use a Credit Card to Build Credit

The Right Way to Use a Credit Card

If you do not use a credit card correctly, your credit score could drop. Therefore, we have some helpful tips that are sure to help you use your credit card in a way that will improve your credit score. 

Firstly, try to use your debit card or cash whenever you can. Even small transactions on your credit card can add up, resulting in a large monthly payment. The more you use cash, the more likely you will be able to keep debt to a minimum and your credit score high.

Note: A good rule of thumb is to only use your credit card for things you need, not the things you want. In other words, if you go on a shopping spree, use your debit card; if your car needs maintenance, use your credit card.

Secondly, never miss a payment. At the end of every month, it’s important to at least make the minimum payment. If possible, pay off the entire balance. If you make a late payment or miss one, it can lower your credit score by 50-75 points! Consider setting up autopay if you tend to forget to make those monthly payments.

Lastly, never go over your credit card limit. If you spend even a penny over your limit, your score can drop by 40-50 points! This point difference is staggering, especially if you plan to buy a house or car soon. 

How Many Credit Cards Should You Have to Get Good Credit?

Most Americans have three to four credit cards. However, depending on your circumstances, you may prefer to have more or less. So what are the pros and cons of having more than one credit card?

Pros of Having More Than One Credit Card

Keeping multiple credit cards allow you to spread outstanding balances. In effect, you’re less likely to reach your limit on one or more accounts. In other words, having more credit cards will give you leeway and flexibility. It’s usually a good idea to have a backup credit card in case your usual card is not accepted or is lost or stolen.

Moreover, different credit cards offer rewards. For example, one card may offer points for hotels or airline miles. Another card might give you cashback on groceries or gas. No one card will give you all the rewards, so having multiple cards might benefit you. However, don’t gravitate toward cards just because of their benefits. Consider whether you’ll use the credit card benefits or if they’re just a nice perk.

Cons of Having More Than One Credit Card

First, it’s not always easy to keep track of spending and payment due dates with multiple cards. For instance, it can be easy to forget how much you’ve spent on each credit card amount.

As mentioned, if you go past your limit, your score could be damaged. Likewise, if you lose track of the payment date, you may miss a payment deadline. The result is a damaged credit score! So if you have a hard time sticking to budgets or juggling too many due dates, acquiring multiple credit cards may not be for you.

In the end, try to keep your credit utilization ratio to 30% or less. In other words, if you are spending more than 30% of your total available credit on each card, you have a greater risk of damaging your credit score.

Note: It’s usually not a good idea to have store credit cards. For one, they increase the temptation to go on more shopping sprees. Moreover, store credit cards also decrease the age of your overall credit history, ultimately lowering your score. The high-interest rates are simply not worth it. 

So, How Many Cards Should You Have? 

The answer depends on your circumstances. However, as long as you make payments on time and don’t pass your limit, your score shouldn’t be negatively affected.

What’s the Best Way to Pay Off a Credit Card Balance?

When learning about how to use a credit card, it’s important to know the types of repayment methods. Basically, there are a few strategic ways to pay off your credit card balances. Listed below are two techniques to successfully pay off a credit card balance:

  1. The Snowball Method. It involves paying off the smallest balances first. After it’s paid off, you move to the next highest balance. If you have a lot of debt on different credit cards, this method may work best. 
  2. The Avalanche Method. With this method, you pay off the debt with the highest interest rate first. If you have high interest accruing on certain accounts, this method may work best. 

As you start making these payments, it’s always best to pay more than the minimum whenever possible. Why?

When you pay more than the minimum, you decrease the amount of interest you pay over time and pay off your debt sooner. Moreover, your credit score can drastically improve as you pay off your debt. Lastly, having little to no credit card debt makes it easier to make large purchases, such as buying a home or car. 

How to Choose a Credit Card

Before deciding on a card, check to see if there are annual fees, what the APR amounts to, if the card is accepted at your list of frequently shopped stores, and how the benefits measure up to the costs of the credit card. Why? You need to learn how to use a credit card that you plan on using.

Cards with Perks

As noted, some credit cards offer rewards or extra perks. While this might be a great benefit for some, it’s important to ask yourself whether or not you plan to actually use those benefits.

Spending hundreds each month to collect a reduced airfare or a free concert ticket once in a blue moon may not make sense for your budget. Do your research and don’t let a credit card’s marketing ploy win you over.

Credit Cards with an Annual Fee

If it sounds too good to be true, it probably it! Cards that have amazing rewards, low-interest rates, and superior payment options likely has an annual fee.

Should you get a credit card with an annual fee?

When you’re looking at a credit card with an annual fee, take a look at what benefits they offer and compare the cost to what you’ll get. Is the annual fee too high for what you’ll be getting? If so, that credit card might not be worth it. Ask yourself if you will actually use those benefits, if there are any hidden fees, or if there are better deals out there. 

Credit Cards from Unions

Banks aren’t the only institutions that offer credit cards. If you’re not having much luck getting approved for one, consider credit union credit cards. They offer more chances to get a credit card that can potentially make it easier for you.

Should you get a union credit card? 

Credit unions are member-owned nonprofits. As a result, when you get a union credit card, you generally get a more personalized experience. Additionally, credit unions offer low-interest rates and flexible repayment methods.

Nonetheless, there are a few things that you should scrutinize. Credit union has specific entry requirements. When you join a credit union, all your accounts are tied together. And, credit unions are easily affected by local problems in the community.

In the end, the type of credit card and where you get it depends on your unique situation.

Need to Repair Your Credit?

Now that you know all about how to use a credit card, it’s important to note that it’s are a great tool for preparing yourself for greater investments down the road, like purchasing a car or house. Nonetheless, if used irresponsibly, it can harm your future buying power.

If your credit score isn’t where it should be because of credit cards, contact Go Clean Credit. Go Clean Credit is a top credit repair company in Arizona that is passionate about getting you on the road to success. Over the last 15+ years, this credit repair company has helped thousands of people reach their financial goals.

Contact Go Clean Credit today to learn more about how they can personally help you!

Help! My Credit Score Dropped 100 Points

credit score dropped 100 points

Your credit score is an important number that tells lenders how reliable you are at paying back loans and credit. A high credit score will qualify you for the best terms and conditions when taking out a loan. Therefore, a drop in your credit score can cost you thousands of dollars over the repayment course of a loan. If your credit score dropped 100 points, it can drastically affect it.

But don’t despair! It’s possible to fix the situation. In many cases, there is simply an error in your report. Read on to learn what you can do if your credit score dropped 100 points!

What To Do If Your Credit Score Dropped 100 Points

1. Identify the Problem

If your credit score has dropped 100 points, there are probably some major problems that have recently appeared in the report. For example, there could be an error on your report, you may have made a late payment, or you may have an outstanding collection due. 

To determine what made your credit score drop 100 points, you will have to get ahold of your credit report and identify the problem. To acquire a copy of your report, you will have to contact one of the three major credit bureaus or go to After you verify your identity, you will have access to your report. Next, you can analyze it to find where you might have a problem.

2. Remove Errors on Your Report

If your score drastically drops 100 points, chances are there is simply an error on the report. According to the Federal Trade Commission (FTC), one in every five consumers have errors on at least one of their three credit reports. That means that there is a high chance you may have an error in your report. 

If you believe there is an error on your report, you will have to contact one of the three credit bureaus and report the error. They will then investigate the items. If they cannot be proven true, the items will be removed from your report. You should try to find copies of the documents that support your claims.

3. Remove Late Payments

Late payments on loans and credit cards can drastically affect your credit score. For example, a collection can lower your credit score by 100 points. Likewise, removing even a single late payment from your report can improve it anywhere between 30 and 100 points! Moreover, late payments can stay on your report for up to seven years. 

Removing a reported late payment isn’t easy. However, it isn’t impossible either. It takes a lot of persistence to either have a goodwill adjustment or find inaccuracies.  

4. Remove Debt 

Debt weighs heavily on your credit score, contributing to 30% of your overall score! Even a small amount of debt on your report can drop your score hard and fast. 

Unless the debt is an error on your report, this will likewise be difficult to remove. However, it isn’t impossible. To remove debt from your report, you will likely have to contact the original creditors. If the debt is past the statute of limitations, the creditor can no longer legally demand payment. Moreover, be careful not to admit that the debt belongs to you. 

5. Build Your Credit The Old Fashioned Way

If you have no errors on your report and cannot remove any late payments or collections, you may have to build your credit the old fashioned way. To build your credit fast, charge small amounts to your credit card and pay it off at the end of every month or even become an authorized user.

However, the time it takes for you to repair your credit will vary. To improve your score as fast as possible, you will want to employ multiple strategies at once. You can bump up your score in as little as 30 days if you pay down revolving balances, remove recent late payments, remove a collection account, and/or raise your credit limit. 

6. Hire a Credit Repair Company

It isn’t always easy removing errors, debt, or late payments from your report. You can use do-it-yourself credit repair software or try to improve it on your own. While sometimes successful, these methods don’t guarantee results. Moreover, they require a lot of time and effort on your part.

Instead, consider working with a credit repair company, such as Go Clean Credit. They know good people sometimes suffer from bad credit, and they know exactly what to do so you can see results fast! 

You Can Improve Your Score Fast!

With so many ways to get your score in tip-top shape, you can erase that 100 point drop in no time! Contact Go Clean Credit today to get started!

Top Credit Repair Companies in Prescott, Arizona

credit repair companies in Prescott

Your credit score is an important number that determines how reliable you are at borrowing money and it can have a big impact. For example, if you have a low score, it can make it difficult to qualify for loans. Therefore, if you have a low score, it’s important to improve it before buying a house, car, or making another large payment. You can always use a do-it-yourself credit repair software or simply try to improve it on your own. However, these methods involve you putting in a lot of work and often, you aren’t even guaranteed results.

A credit repair company may be the answer you need! Keep reading to find the top credit repair companies in Prescott, Arizona!

Repair Your Score With These Top Credit Repair Companies in Prescott, Arizona!

1. Go Clean Credit

Our number one credit repair company in Prescott is Go Clean Credit. They are passionate about helping individuals be triumph over the pitfalls of bad credit. Moreover, their individualistic approach recognizes you as a valued individual who needs credit repair services, not as a faceless customer who simply has bad credit. They know that good people sometimes have bad credit -and they know exactly how to help!

They work hard to simplify the seemingly overwhelming process of improving your credit. In the end, their mission is your success! Contact them today to get started!

2. Andorra Credit Repair

Andorra Credit Repair believes you shouldn’t have to wait any longer with a bad credit score. They provide an immediate action plan for a speedy repair. Essentially, heir experienced professionals work hard so you don’t have to be frustrated over bad credit any longer. Moreover, they offer multiple credit repair services so their customers can experience a complete recovery from a bad score.

3. Credit Absolute

Credit Absolute sees results fast! Within 30-90 days, your credit score can increase anywhere between 40-100 points with the help of their credit repair experts. They are driven by positive results. Credit Absolute also has a very personable approach. You speak directly to a credit expert over the phone or in-person and they explain to you why you might not be getting loan approvals, among other things. Next, they communicate with you every step of the way so you know exactly how they are fixing your report. 

4. Anytime Credit Repair

Anytime Credit Repair has a data-driven approach. They know that 79% of credit reports contain errors. If a credit bureau can’t prove that it is valid, the bureau must remove it. Therefore, Anytime tries to get all those negatives off your report so your credit score improves in a timely manner. Moreover, their customer-service-driven approach paves the way for happy, satisfied customers.

5. Zorro Credit

Zorro Credit’s philosophy is to get your score repaired as fast as possible. Their team of experts sits down with you to create a clear plan to drive the quick results. Their team of highly qualified lawyers dispute errors on customers’ reports every day. They can remove collections, late payments, bankruptcies, charges, and foreclosures. They have the experience you need to get the right credit score. 

6. Credit Revitalize

Credit Revitalize is proven to be 3x more effective than a typical credit repair service. They’ve developed a revolutionary, high-tech way of improving credit fast. They can even challenge up to sixty items on your report at a time! Furthermore, they are able to permanently delete all types of negative credit. They believe everyone has the right to a fair and accurate credit profile.

Start Repairing Your Credit Today!

With so many credit repair options, improving your score is easier than ever. Contact one of these top credit repair companies in Prescott and increase your score today!

Related Articles:

Good Credit Vs Bad Credit: Loan Approvals at Each Credit Score

good credit vs bad credit

It’s important to build credit so you can qualify for loans and aren’t tied to a loan with bad rates. Perhaps you’ve wondered what loans you qualify for and how to compare good credit vs bad credit. Whether or not you qualify for particular loans usually depends on the lender, but your credit score will determine how high your interest rates will be, as well as the down-payment amount. Keep reading to learn more about how good credit vs bad credit effects loan approvals!

Loan Approvals With Bad Credit

Score of 520-529

A credit score in this range will make it extremely hard to get approved for loans, but it’s not impossible. For example, if you want to buy a house, most lenders will outright reject you. Even if you do qualify for a home loan, you will have extremely high-interest rates, even at rates half the principal loan. 

With car loans, you still have the possibility of being outright rejected but are otherwise easier to find. However, you will still have exuberant interest rates that could cost you upwards of $10,000 over the term of the loan!

With personal loans, if lenders don’t reject you, they might ask for collateral. This could be a title lien or a home deed. However, this can be extremely risky. Otherwise, your interest rate could be upwards of 20%!

Score of 530-549

As with the previous scores, your down payment and interest rates for a car or house will be extremely high. Lenders may even require you to have a co-signer for added security. However, it’s still not impossible to get approved for some loans.

To get a better idea of how this score can make life difficult, consider you are purchasing a house of $300,000 and you have a credit score of 535 to 540. Your interest rate is 5.9%, which is a jump from someone with excellent credit, 4.31%. It may not seem like much difference, but over the course of the loan, you will pay about $105,000 more than you would with excellent credit! 

Next, consider the price difference of an auto loan. Say your car costs $27,000 and your score is 535. With a 36-month payment agreement, you will pay roughly $500 more than with a score of 615. With a 48-month payment plan, you will pay roughly $700 more than with a score of 615. Last but not least, a 60-month plan will have you paying about $900 more than if you had a score of 615. That’s right! An 80-point difference in your score could cost you $900!

A score of 540 isn’t looking much better. Your interest rates are still too high. With a $27,000 car loan, for example, a credit score of 640 will put interest rates a little over 9%, while a score of 540 will be a little over 14%. That means with a 36-month auto loan, you will pay about $2,500 more, with a 48-month loan, $3,500 more, and with a 60-month loan, $4,500 more. 

Score of 550-579

With a score of 550 to 560, a $300,000 house can cost you over $68,000 more than if you had excellent credit over the course of the loan. While this isn’t as bad as a score of 540, it is still an enormous expense that will carry with you for years. 

If your credit score is anywhere between 540 to 570, car loans will have a similar expense. With a $27,000 car loan, for example, a credit score of 640 will put interest rates a little over 9%, while a score of 540 will be a little over 14%. That means with a 36-month auto loan, you will pay about $2,500 more, with a 48-month loan, $3,500 more, and with a 60-month loan, $4,500 more.

Score of 580-619

A credit score of 580 is a magical number where The Federal Housing Administration (FHA) will offer a home loan with only a 3.5% down payment. Anything lower than this, and your downpayment for an FHA home loan is 10%! For example, if you wanted to buy a house that costs $140,000, your downpayment would be almost $5,000 cheaper than if you had a credit score of 530! 

Keep in mind that even though you qualify for better FHA loans, most other home loan providers will charge high-interest rates and down payments. You could still be paying upwards of almost $70,000 more than someone with excellent credit, even if your credit score is 600.

With a credit score of 580, your car loan is still about 14% on a loan of about $27,000. Let’s compare it to a score of 680. With a 36-month auto loan payment method, you will pay about $3,700 more than if you had a score just 100 points higher. With a 48-month loan, you pay about $5,000 more. Lastly, with a 60-month loan, you pay about $6,500 more. In comparison, with a score of 590-600, your auto loan interest rate goes down to about 13%.

Loan Approvals With Fair Credit

Score of 620-659

So you’ve reached a credit range where things get a little easier! Yay! 

With fair credit, it suddenly becomes much easier to get loans. Most loan providers will lend you the money you need at fairly reasonable rates. While the interest rates will still be much higher than of someone who has good or excellent credit, you’re not in the bad credit red zone, which makes it much easier to qualify for loans. Additionally, you won’t have to have a co-signer, give up collateral, or pay astronomical interest rates.

Loan Approvals With Good Credit

Score of 660-749

Good credit makes it even easier to get a loan. If you are turned down for a loan and you have good credit, it may be because your income is too low, your debt-to-income ratio is too high, you’re self-employed, have irregular income, or there’s an error in your credit report. Otherwise, you should qualify for any loan you want. Though you may not qualify for the lowest interest rates possible, your interest will still be exceptionally low. 

Loan Approvals With Excellent Credit

Score of 750+

Congratulations! The world is your oyster. You are a free bird. Your tethers have been untied. You qualify for the best loan contracts out there, meaning you get the best interest rate with the lowest downpayment. 

Improve Your Credit Score Today!

Now you understand the effects of good credit vs bad credit! If you have bad credit, it’s best to improve your credit score before you get out those moving boxes, take that nice car for a test drive, or make another large purchase. 

Go Clean Credit is a company that helps individuals understand the difference between good credit vs bad credit and improve their poor credit scores. Contact them today for more information about how you can improve your score before you commit to a loan with bad rates!

How to Freeze Your Credit [FOR FREE]

freeze credit

If you’ve been reading about ways to protect yourself against identity theft, you’ve probably heard of a credit freeze. In this article, we will discuss everything you need to know about freezing your credit report. Keep reading to learn how you can freeze credit for free!

What is a Credit Freeze and What Does it Do?

Essentially, freezing your credit means restricting third-party access to your credit report. Because most creditors need to see your credit report before they approve a new account, freezing your credit will make it harder for identity thieves to open accounts in your name. However, your credit report will still be accessible to existing creditors, debt collectors, and government agencies. By federal law, credit freezing is a free service that does not impact your score.  

So what does a credit freeze do for you? When you freeze credit, you are better able to control your assets and debt. However, it may make it more difficult for you to qualify for a new credit card or a loan. Additionally, it can make it difficult for you to access your own FICO score. It does not, however, prevent you from getting your free annual credit report. 

How Long Does a Credit Freeze Last?

When you freeze your credit, you can temporarily lift or permanently remove it at any time. However, unfreezing your credit requires you to have a password or PIN. These options can be helpful if you want to open a new account, take out a loan, or get a new credit card since you can’t otherwise do these things without access to your credit report. However, in most states, the credit freeze will expire after seven years.  

What is the Difference Between a Credit Freeze and Credit Lock?

You may have heard the terms credit freeze and credit lock used interchangeably. However, there are some differences between the two. The biggest difference is that credit freezes are protected by federal law, while credit locks are not. That being said, a credit freeze is much more secure than a credit lock. 

For instance, while unfreezing your credit requires you to call the credit bureau and provide a PIN or password, unlocking your credit can be done anywhere at any time -even from your phone. A credit lock is a good option to use as a preventative measure to guard your credit report from identity theft. However, a credit freeze is a better option if you believe your credit report and personal data have been exposed. 

Moreover, by federal law, all three credit bureaus offer free credit freeze. On the other hand, a credit lock is free at TransUnion and Equifax, but Experian requires a monthly fee. Whether you choose to either freeze credit or lock it simply depends on whether or not you need a secure way to protect your personal information through federal law, or you wish to protect your report while still having easy access.

How Do You Freeze Your Credit Report?

To freeze your credit report, you will need to contact each of the three credit bureaus: Equifax, Experian, and TransUnion. You will need to supply your name, address, date of birth, Social Security number, and other personal information. After your request has been processed, the bureau will provide you with a PIN number or password unique to you. If you wish to lift the freeze, you will need to have the PIN or password handy, so keep it in a safe place. Make sure you do this for all three bureaus in order to completely freeze credit.

Easily Get Credit Help Today!

If you have more questions about credit, a company like Go Clean Credit can be helpful! They are a passionate credit repair company that works to help individuals understand and repair their credit scores. For more information about how they can help you, contact them today!

What Credit Score is Needed for a Home Loan?

credit score needed for a home loan

Your home is more than where you hang your hat. It’s where memories are made—they are buildings that give you feelings of safety and security. 

Whether you will be a first-time buyer or a seasoned mover, buying a new house is a big step in life. While there are many aspects that go into purchasing a house, one of the most important is your home loan. Without it, you won’t be able to pay for the house at all. However, your credit score actually determines what kind of home loan you qualify for -and even if you qualify for a home loan at all. Luckily for you, in this article, we will explain the credit score needed for a home loan.

What Credit Score Will Qualify You for a Home Loan?

How To Read Your Credit Score

You can request your score from a number of places, such as a credit reporting agency. Here’s how to understand your score:

  • Excellent Credit: a score of 750 or higher
  • Good Credit: a score between 660 and 749
  • Fair Credit: a score between 620 and 659
  • Bad Credit: anything below 619

What Credit Score Will Lenders Accept?

Basically, the answer depends on the lender. If your score drops below 660, however, lenders will start to see you as a potential risk. Some lenders might not give you a loan even if you have fair credit. On the other hand, other lenders might say that a score of 640 or 620 is where the line is drawn where they won’t approve you for a loan. If you have a bad credit score, you can expect to be turned down by most lenders. The credit score needed for a home loan doesn’t have to be excellent, but it needs to meet a lender’s requirements.

On the other hand, you could qualify for a subprime loan or receive a loan from the Federal Housing Administration (FHA), which is one of the only lenders who provide home loans for people with bad or fair credit. However, they have a minimum score of 580 to qualify for a low down payment advantage, which is only 3.5%. If your score is below 580, you are required to pay a 10% down payment to qualify for loans. If you have a fair or bad credit score, an FHA loan might be your only choice.

Does Your Credit Score Affect Interest Rates On Home Loans?

Yes! The difference between excellent credit and fair or bad credit can cost you tens of thousands of dollars over time. The lower your score, the higher the interest rates. 

For example, according to “Home Loans with Bad Credit: What Credit Does For Your Payment”, if you have a home loan amount of $300,000 and an excellent credit score of 740, you qualify for the lowest interest rates possible. Let’s say your interest rate is 4.31% and your monthly payment is $1,487. One late payment can drop your credit score up to 100 points, so say one late payment drops your credit score to 690. 

Lenders might see you as a risk and raise your interest rate to 4.71%, which adds about $70 to your monthly bill. It may not seem like much, but over the course of your mortgage, you will ultimately pay $25,560 more than if you made the payment on time! Likewise, if your score was just 20 points lower at 670, the added cost would come to $39,600! 

In the end, your credit score has a huge impact on the terms and conditions of the loans you receive. The difference of a few points on your score could cost you tens of thousands of dollars. 

Should You Improve Your Score Before Taking Out a Home Loan?

Even if you have a credit score needed for a home loan, it is always a good idea to improve your score before taking out a loan. The lower your score, the more money you will pay and the harder it will be to get out of debt. However, if you can prove to lenders that you are trustworthy by upping your score, you will qualify for better terms and conditions and lower interest rates. Try improving your score before taking out a home loan and save yourself thousands of dollars over the course of your mortgage repayment!

Easily Improve Your Credit Score Today!

Though it might seem daunting to improve your score, it really isn’t too hard. For one, read about the ways you can improve your credit score in as little as thirty days. If you happen to have bad credit, you can also contact a company like Go Clean Credit, who helps people restore their scores. By taking action now, you can start improving your credit score today, ensuring that you receive the best deal possible when taking out a home loan!

How to Improve Credit Score in 30 Days

how to increase credit score Your credit score matters. Someone can take one look at your score and determine your mortgage and car loan rates, consider whether or not to approve your apartment or credit card application, and even decide whether or not to hire you for employment. Your credit score impacts many aspects of your life. Therefore, it’s vital that you start raising your score now (that perfect house isn’t going to be on the market forever). Keep reading to discover how you can improve your score in as little as 30 days!

Here’s how to improve your credit score in 30 days:

1. Pay down revolving balances to less than 30%

how to improve your credit score in 30 days Your aggregate debt and the amounts owed on all credit cards and all installment accounts make up about 30% of your credit score. The most common revolving balances are amounts owed on your credit cards. However, there is a big difference between the revolving balances of someone with a 780 credit score and a 680 credit score.
  • Credit score of 680 → revolving balances of 40%-50% of their credit card limits.
  • Credit score of 780 → revolving balances of 15%-25% of their credit card limits.
Essentially, don’t worry too much about paying installment accounts. They have a low impact on your score. Instead, pay your revolving balances off as soon as possible. At the very least, aim to pay those balances down to less than 30%. This will help to improve your credit score in 30 days or less.

2. Remove recent late payments

A single late payment can drop your credit score by 60 to 110 points. Yikes!
  • A 680 credit score → a 30-day late payment can drop your score by 60 to 80 points. On the other hand, a 90-day late payment can drop your score 70 to 90.
  • A 780 credit score → a 30-day late payment can drop your score by 90 to 110 points. In contrast, it can drop 105 to 135 points if you have a 90-day late payment.
The difference between a person with a 780 score and a 680 score is that the 780 score has no late payments, while a person with the 680 may have a 30 day late payment within the last year or a 90 day late payment 2 years ago. Removing a late payment will take persistence. There are a couple of ways to request removal. The most common and effective way is to call the original creditor and ask for a goodwill adjustment. If they resist, you can even negotiate the removal of the late payment by agreeing to sign up for automatic payments. For other late payments, you can file a dispute against the late payment for inaccuracy.

3. Remove a collection account

how to raise your credit score in 30 days People with a 780 credit score do not have any collections or other major derogatory items on their credit report. If you do have a collection account reporting on your credit report, you should try to get the collection deleted. Do NOT just pay a collection. A paid collection usually doesn’t help improve your credit score! Instead, negotiate a “pay for delete” IN WRITING with the collector. Only when you have a written agreement should you pay a collection account, and then work on getting the account deleted.

4. Raise your credit limits

Call your credit card companies and request a raise to your credit limits. Ask if they can raise your credit limit with a soft pull of your credit since a hard inquiry will appear under the “New Credit” category of your FICO score. If you can negotiate an increase of your credit limit with a soft inquiry, then you will instantly decrease your revolving balance ratio (revolving balance divided by your credit card limits). If you have low balances and good payment history, then your chances of successfully executing this tactic will increase.

5. Charge small amounts to inactive credit card

how to improve credit score It’s easy to neglect older credit cards when you have a primary credit card that you use every day. If your credit cards haven’t had activity in the last six months, charge a small amount to the credit card. Creditors want to see that you are using the credit available to you as well as paying the balances off responsibly. Charging a small amount and paying off the balance shows that you have a different mix of credit in use, which makes up a portion of your FICO score.

6. Get credit

No credit equals bad credit. You need credit accounts to be reporting to your credit report in order to improve your credit score. You must have at least 1 open revolving account, even if you have no negative accounts. In addition, this revolving credit account must have been used in the last 6 months. There are a couple of ways to get credit to improve your credit score in 30 days. One way is opening a secured credit card, with preference being given to a card that reports as an unsecured card with your credit limit to all three bureaus. The other way is to add yourself to a seasoned tradeline. Someone with good credit history can add you as a co-signer, where you are equally responsible for all debt. Or, they can add you as an authorized user, where you are not responsible for any of the debt – and Mortgage FICO 5 will count the history as yours.

Start Improving Your Score Today!

If you need to improve your credit score as soon as possible, you could benefit by enlisting the help of a credit repair company such as Go Clean Credit. To learn more about our credit repair programs, please contact us.
No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a one size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month. We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

How Does Credit Work: The Beginners Guide

how does credit work

Borrowing money enables people to make purchases without paying cash. Buying a home, purchasing a car, or taking care of smaller day-to-day expenses are just some of the things people use credit for. However, credit works similarly to loans and must be paid back in full. One major difference between a loan and a credit card is that the cardholder chooses how much to spend their money on, and then they must pay back the amount spent. On the other hand, loans are a fixed amount of money that is repaid over a selected amount of time. So how does credit work?

A credit report thus tracks whether a person is reliably paying off his or her debt when payments are due, or if s/he fails to make the payments on time. Most individuals who have student loans, have purchased a home or car, and/or have used a credit card have a credit score. Essentially, your credit score communicates to lenders how likely you are to pay back your debt, as well as how likely you are to pay it back on time. So now you know what it is, you’ll want to know the answer to the question of how does credit work?

Why is it important to know your credit score?

A good credit score can make it possible for you to receive better terms and conditions when taking out a loan. Additionally, it may even impact the interest rates of those loans. Therefore, it is important to know what your credit score is, as well as understand what it means.

  • Excellent credit: 750 and above
  • Good credit: 660-749
  • Fair credit: 620-659
  • Poor credit: 619 and below

An excellent credit score gets you the best financing terms available when you borrow money. For example, if you are buying a house with an excellent credit score, you will qualify for the lowest interest rates out there. In the span of a few years, the low-interest rates can save you thousands of dollars.

With a good credit score, on the other hand, interest rates will be a little higher if you wanted to borrow money. It might be a good idea to try and repair your credit score before taking out any loans.

Bad credit can make it difficult to qualify for many loans. Though there are loans available for people with poor credit, the interest rates can be very high. Luckily there are things you can do right now to help you raise your credit score! For example, you can pay off debt, ensure payments are made on time and use your credit. If you use your credit and then pay it off on time, you can actually raise your score.

Where can you find your credit score?

If you don’t know what your credit score is, don’t fret. There are a number of places where you can find your credit score. You can check with your credit card holder, use a credit score service, or use a variety of other options.

If you discover your score isn’t what you want it to be, contact Go Clean Credit. We know it can be scary to have poor credit, but we are dedicated to helping people raise their score in a way you can trust.

You’re an Adult! Here’s How to Build Credit at 18

how to build credit at 18

Adulting is hard. If you haven’t already, you have to find a job, enroll in college, and basically figure out what you want to do for the rest of your life. There will never be a more exciting time, however stressful it may be. One of the most important things to be aware of as an adult, however, is your credit score.

Your credit score is a number that basically measures how responsible you are when you borrow money. It will communicate to lenders how likely you are to pay back the money you borrow, as well as whether or not you will pay it back on time. Essentially, this score can impact how much interest you will pay when you take out a loan. Over time, that interest can cost or save you thousands of dollars. A low credit score can have negative consequences.

Basically, if you want to buy a house, a car, or other important things people do in the adult world, you will have to start building your credit now. Below is a list of ways that will explain how to build credit at 18.

Easy Ways to Build Credit at 18

Become an Authorized User

One of the easiest ways to build your credit score is to piggyback off of someone you know. For example, your parents can add you as an authorized user on their credit card. This means that as long as the cardholder makes regular payments on their card, you get to benefit from their credit score even if you don’t use the credit card.

However, if the family member or friend you are listed under makes irregular payments -or worse, doesn’t make payments at all- your credit score will be negatively impacted. On the other hand, if you are doing a poor job of paying back the borrowed money, your friend or family member’s credit score will likewise drop. In other words, be mindful of who you decide to be an authorized user with.

Get a Credit Card

One of the simplest ways to build your credit score right now is by getting a credit card. As long as you pay off the card in full at the end of every month and pay it on time, you can easily boost your credit score.

However, as an 18-year-old, it can be difficult to qualify for a credit card. Luckily, there are some starter credit cards for people with little to no credit history.

Take Out a Student Loan

Are you going to college? If so, you might have to take out student loans. Though the thought of borrowing money might seem frightening, don’t despair! Student loans don’t need to be paid back until after graduation and they are a great way to start building credit.

Essentially, people with a long credit history get a boost in their credit score. Whether you work to repay loans while you are still in school or wait until after graduation, student loans usually have a long repayment period, which can positively impact your score over time.

Just beware. If you default on your loans, fail to make payments, or make late payments, you will negatively affect your credit score.

A Routine of Good Habits

In the end, the best way to build credit is by making good habits now. Whether you decide to get your own credit card, become an authorized user, or take out a loan, make all of your payments on time. Additionally, make sure not to use your credit card too much. In other words, only use about 30% or less of the maximum credit amount you are allowed to spend. Lastly, limit the number of credit accounts and loans you take out. Too much borrowed money can lead to debt, late payments, and they can negatively impact your score.

Congratulations! You are adulting!

You can build a great credit history just by learning how to build credit at 18. When you have excellent credit, you will receive the best deals in life when it comes to borrowing money. On the other hand, if over the years your credit score drops, there are services available that will help you bounce back. Go Clean Credit is a great service that helps individuals with bad credit improve their scores. If you are worried about your score, contact them today!

Do-It-Yourself Credit Repair Software: What to Know Before You Try

do it yourself credit repair software

Do-it-yourself credit repair software on the internet at the onset can seem very promising, but buyers beware! These products can do more harm than good if you are not doing your research into what they offer. You can run into a number of issues with security, not getting the results promised, or the credit issues are just too hard to fix by yourself.

It is important to know your current credit situation before you download DIY credit repair software, so you know what to expect from their services. For those of you who are thinking about purchasing do-it-yourself credit repair software, here are a few things you should know before you buy:

Internet Security Varies

With privacy being a huge issue today in the world of internet security, there are malicious spyware programs that are disguised into what looks like to be a harmless program. You might be a situation where you cannot afford to hire a credit repair specialist to help you increase your score, so you decide to buy and download an affordable or free program from the internet. These programs can be hacked by criminals who could encode a spyware program into simple credit repair software and you would have no idea.

As a consumer who is required to enter personal data into said credit repair program, the spyware that has been coded into the site can capture extremely sensitive financial data and spread it all across the internet. In no way are we saying that all do-it-yourself credit repair software programs contain malicious spyware, but this is a warning that it is not encouraged to download software that does not come from a well known, reputable company.

Improvement Isn’t Guaranteed

No matter what kind of issues you are trying to solve with do-it-yourself credit repair software, it can be tough to see improvements over a short period of time. Bad credit does not fix itself overnight and it might take some time before you see real results. However, without the help of a professional, you might have to wait even longer before you notice credible results. This is due to you trying to solve your credit issues yourself and not knowing the fast and easy ways to communicate with the credit bureaus or lenders.

Most credit repair issues require you to speak with someone from either your bank or bureaus. Without someone who has years of experience in communicating with these stubborn individuals, it can be tough to improve as fast as you would like. All in all, it’s best to find a credit repair company who can work with you even when your budget is small. Companies like Go Clean Credit,  do not treat you like a “number” and take the time to fully understand your unique situation.

Some Problems Are Too Tough

You might think that you can solve your credit repair issues by yourself because you caused them in the first place. Most people do not realize that these issues can be far more complicated than they thought. Without years of credit repair knowledge, you might find yourself stuck in a place where you can’t move forward and after all your hard work, you are back to square one.

Of course, this is not why you purchased do-it-yourself credit repair software and you need to find better alternatives in order to improve your credit score.

No One-Size-Fits-All Solution

As a consumer, you should ask yourself one important question. Is taking something as important as credit score into your own hands really worth the risk of causing further damage? Most people would answer no, and we would agree.

Your credit profile is something that will follow you throughout your entire life and it’s better to work with professionals who know what they are doing. No matter what your situation is, it is best to reach out to a credit repair company to see if they have programs available to help you through this time of struggle.

Go Clean Credit offers valuable credit repair programs to its clients while educating them every step of the way. The credit repair representatives at Go Clean Credit believe that education is just as important as improving your score, so they will make sure you understand every step of the way.