5 Ways to Settle Your Credit Scores and Pay Off Loan Faster

Desperate times call for desperate measures. Thus, no one will blame you if you turn towards taking a loan in order to overcome a financial difficulty. However, loans are like boomerang. First, it’ll help you, but it’ll come back and become the problem itself.

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It’s true that paying loans is a hassle, but you must never delay paying it. The longer you settle your account, the bigger you’ll have to pay. If you’re struggling to put your loan behind you, you might want to consider the following tips:

  1. Round up the amount.

While you can compute for the exact amount you have to pay monthly, you can also try rounding up the sum. If you have to pay $236, you can round it to $250 or $300. This way, you’ll end up with an extra. Keep this extra money. You can use these savings in times of emergency. For example, if you’ll end up with spending money on other matters, you can tap into the savings to pay off your loan for the month.

You can also take this tip to another level and add another $50 every time you allot money for paying your loans.

  1. Pay bi-weekly or bi-monthly.

If you don’t have enough funds to pay the loan in bulk, you can always pay bi-weekly or bi-monthly. This way, you can accumulate less interest, and pay extra payment that could eliminate some months off the estimated timeframe.

When you decide to do this, make sure that you discuss it in length with the lender. Some of them do not accept this arrangement and even get penalties in doing so. If this is the case, you can just set aside money bi-weekly and bi-monthly and still pay on schedule.

  1. Pay one month in advance.

The purpose of paying one month in advance is the same as that of the previous two. You can settle your loan faster and prepare for at least a month of emergency. To make this possible, you can use the money you get from your income tax return or from your 13th-month payment.

  1. Earn extra income.

When your expenses get higher, it’s natural to look for extra income. It might sound like a hassle, but it’s necessary. It does not have to be a permanent work. You can take a part-time job until you have fully settled your account. It’s better if you work extra hours than to skip paying your loan. This way, you will not have to suffer from penalties.

  1. Let go of your asset.

Let’s assume that you have gotten car title loans in Moreno Valley, and end up with the responsibility of having to pay for it for several years to come. On one hand, you can work extra hours. On the other, you can just let go of your car. The latter will only work if you have no longer use for the car itself, of course. In making the decision, you have to weigh the pros and cons carefully.

Conclusion

Settling a loan is never pleasant. That is why it’s better to be done with it as soon as possible. The most important thing that you have to remember is to never skip a month. If things come to worst, your last resort is to ask assistance from your friends and family.

Easy Fix for Your Credit Score

During your lifetime, you can lose some hundreds to thousands of dollars to a bad credit score; it will cost you some serious cash! Bad credit score means higher interest rates for a loan and higher insurance premiums that will mount over the years. Bad credits can stop you from achieving major life goals, like buying a house, taking a vacation, going back to school, or even retiring on schedule.

But what if there are errors on your credit reports, or debts appearing multiple times? Even a credit that’s decades old, perhaps? In such cases, you’ll have to pay unfair interests on your credit card, mortgage, and car loan. You can approach each of the credit bureaus and update your credits profile, but that’s a drawn-out process. Instead, you can hire a credit repair company for increasing your credit score.

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All you need to know about credit repair

You can either repair your credits yourself, or hire credit repair companies to do it for you. Credit repair is the practice of fixing bad credit reports, and is as simple as fixing mistakes with the credit agencies. Extensive credit repair work may be required for major unfortunate events, like identity theft. But the general form of credit repair deals with fundamental financial concerns, like budgeting, updating profiles for loans, and much more.

A number of commerce firms claiming to do credit repairs have sprung up in recent years; some are genuine, while others are not. In many cases, legal and financial expertise may be needed to repair a bad credit score. Depending on the degree of the problem, it may involve simply cleaning up mistakes in the credit sheet or going for professional assistance.

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How credit repair companies work

Credit repair leverages your legal right to three standards – must be accurate, entirely fair, and fully corroborated. If the entries on your credit report don’t meet these standards, you may want to consider hiring a credit repair company.

A good credit repair company will first collect your credit reports and pinpoint your credit issues. The credit reports will be collected from 3 or more credit reporting agencies. This is done because each report may have diverse credit entries, which might be present in one and missing in the other. Once these errors have been identified, you need to submit supporting documents that may be used to validate any erroneous credit entries.

Credit repair companies will then review your credits, and produce a sample of precise credit evaluation. It then directs the supporting information and disputes to the respective data furnishers or bureaus. They will in turn work with your credit repair company to determine the necessary changes to in your credit report.

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Know your legal rights

No one can legally remove any negative information from a credit report. You can only request for an investigation – free of cost – on the erroneous information in your credit report. The Fair credit reporting Act connotes a few legal rights for the credit holder.

According to the law:

  • If a company takes any adverse actions against you, like denying your credit application, employment, or insurance, you’re entitled to a FREE credit report.
  • All nationwide credit reporting companies are authorized to provide you a free copy of your credit report once every year on request.
  • You’re not billable if you dispute inaccuracies in your credit report.

You can fix your credit reports yourself. However, there’s no quick-fix solution. Negative information that’s accurate can’t be changed, and will continue to reflect in your credit report for 7-10 years. You can maintain a good credit report by knowing your credit utilization rate, checking your credit report frequently, and tracking all credit reports that you hold.