Some believe that money is the answer to all their problems, but that is not necessarily the case. Obviously, a credit card debt problem can be solved with money – in fact, it’s the only solution. But there are financial problems that can not be settled with great money and a low credit score is just one.
A credit rating is not lying and its evolution is strictly due to your decisions and financial choices. Even if you have made millions, bad decisions about your finances will be reflected in your credit rating. The correlation is done directly and here is why it is impossible to buy a better credit rating:
Your credit rating has an excellent memory
Credit ratings are incredibly hateful; they remember all the decisions and financial choices of your past – good or bad. Each credit bureau calculates its rating in its own way, but a balance that has not been paid on time will remain in your history, anyway. Moreover, if you are sued by a collection agency following your unpaid debts, this will remain in your history and could haunt you for years.
In addition, if your unpaid debts continue to be judged by the courts, the judgment could allow the creditors to seize your salary. This will not only be part of your credit report, but it will also have a negative effect on your rating and no amount of money will be able to remedy the situation.
Your credit rating does not care about your annual salary and your big luxury home
Your credit rating does not care about your assets, income and other possessions. Millionaires can have bad credit as much as an employee who earns the minimum wage can have an excellent rating. The decisive factor in credit is in your financial decisions. If you pay your balance on time, use credit cards irresponsibly and do not worry about your savings, your rating will suffer regardless of your salary income.
Some experts believe that this should actually be used to calculate credit scores, but as it is not yet put into practice, it is better to forget this so as not to confuse you.
Financial Turnaround Advisers Can not Work Miracles
If you are willing to pay a certain amount, you can hire a financial services advisor to help you improve your credit rating. If you are not familiar with the world of finance, or do not have the time or the means to recover from your financial situation alone, hiring a consultant might be a good solution. On the other hand, they can not work miracles and your credit rating will not improve in a helping hand. Financial advisors review your credit report and do a “clean up”: they try to find questionable items that could be removed from the report, hoping this will improve your credit rating. They can also negotiate with your creditors to consolidate your debts and delete collections reports.
Although this service may be useful for some people, the majority of exercises performed by an advisor can be done yourself. If you’re open to learning more about the area and putting in some effort, there’s nothing that a counselor can do that you can not. You will be able to keep your money in your pockets.
What is the best way to improve your credit rating?
A little effort and patience. Your credit rating plays a very important role when it comes to your finances, so it’s okay to want to find a quick fix to improve one’s rating. Unfortunately, a good credit score must be earned and it will be in your choices and financial decisions that everything will be played. Always pay the full amount of the barnacle on time so you do not lose control of your debt. If you pay the total amount on time and keep the proportion between your available credit and your lowest balance possible, you should see your credit rating increase.