Whether you’re aware or not, your credit score impacts every facet of your life. From getting a car loan to buying a house, having good credit can be the deciding factor on if you achieve your goals.
If you’re new to the world of credit, you should know that a “good” credit score starts at either 670 or 661 depending on the system. That said, the type of system used to assess your “credit-worthiness” can depend, but the factors used to determine whether lenders approve your request is largely the same.
Systems typically determine your credit score by assessing your payment history, how much you owe, and the length of your credit history. Though a good credit score may seem easy enough to achieve at first glance, as of late 2019, about 22% of Americans had no credit at all. Reasons for not having a score can include individuals just being young and not having had enough time to build credit or not having used credit in the past few months. That said, regardless of the reason, it is important to make sure your credit score is the best it can be.
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The Rise of “Bad Credit”
With the current coronavirus pandemic showing no immediate end, the number of people with bad credit will continue to increase as Americans use their credit cards as a “lifejacket” to supplement their lost income. Credit card debt is an expensive debt, and it becomes even more expensive if you fall behind and add late fees to interest charges and other fees. If you fall far enough behind, your account may be closed, and the balance accelerated. That means the credit card company will be asking for the full balance, not just your normal monthly payment. Internal collections staff may call you several times a day. And, if collection efforts are unsuccessful, the debt may be sent to collections, sold to a debt buyer, or a lawsuit may be filed.
Ultimately, this will end up with you having a poor credit score and not being able to get the loans you need in the not-so-distant future. So, what do you do?
Managing Your Credit Score
To improve a poor credit score, and alleviate your stress, you may consider options like applying for a secured credit card or a card marketed towards consumers with poor or average credit. However, that may not be the best option if you, like many others during this pandemic, already have a pile of debt and lack of income.
The best way to manage your credit card debt will depend on a variety of factors, including the status of the debt. Your options for managing a debt that is still with the original creditor may be more limited than your options for negotiating or challenging a debt that is in collections or has been purchased by a debt buyer.
If you’re facing a lawsuit over unpaid credit card debt, quick action is required. Many lawsuits for unpaid credit card debt end in default judgments because the account holders didn’t respond or show up in court.
DebtCleanse Can Help
When you sign up with DebtCleanse, we’ll connect you with an experienced and knowledgeable attorney who will help you build a plan to improve your credit score and help you accomplish your financial dreams, like homeownership. Take the first step today at no risk to you - At DebtCleanse we’re confident that our approach will help you overcome your debt which is why we offer a 30-day money-back guarantee.
So what are you waiting for? Call us at (800) 500-0908 or get started online now.