Credit repair is something many people start to think about as they start earning money and wanting to take on financial responsibilities like mortgages, car loans, and more. While it seems like a pipe dream, credit repair is achievable with the right mindset and strategies.

At Georgia Auto Pawn, Inc., we dive deep into the top five ways you can easily begin your credit-fixing journey with the credit repair tools 2024, so you can build the life you want. Learn more about how to improve credit score quickly through your payment history, understanding your credit utilization, what to do before closing your accounts, fixing any errors, and how title pawns can assist you.

Things You Need To Know About Credit Score Repair

How Credit Scores Are Calculated

However, before fixing your credit scores, it's essential to know how your score is calculated by the two major models, FICO and VantageScore. While the exact calculations are trade secrets, both models operate on the same data found inside your credit report. All the information pertains to your borrowing and repaying habits.

Since FICO is the most common score used by lenders across the country, let's take a look at the factors that matter most in its credit report calculations:

• Payment history — Remaining on top of your bills helps your credit score. It accounts for a whopping 35% of your overall FICO score.
• Credit utilization — Also known as credit usage or credit utilization rate, it accounts for roughly 30% of your FICO score.
• Length of credit history — Typically, your score increases over time. Thus, establishing a healthy financial record builds your score as the years go by. It makes up about 15% of your FICO score.
• Credit mix — This reflects your total outstanding debt and the types of loans/credit in use. It can influence roughly 10% of your FICO score, with the favored types being installment loans and revolving credit.
• Recent credit applications — Applying for loans or credit cards initiates hard credit inquiries that lower your score by a few points. But if you keep paying your bills on time, your score rebounds in several months. Recent applications make up about 10% of your FICO score.
• Derogatory information — Some credit report entries can damage your score for longer periods. It depends on the information, but FICO doesn't assign a percentage because it isn't found in all reports. It can include foreclosures, accounts sold into collections, and bankruptcies.

The Top 5 Ways To Easily Start Credit Repair

Now you understand the basics of your score, fixing low credit becomes easier, as you'll see from our top five tips on credit repair for bad credit:

1. Improve Your Payment History

As noted, your payment history is the most influential factor when trying to improve credit score quickly. Therefore, it plays a massive role in your credit repair journey. Late or missed payments reduce your credit score and can remain on your report for seven to ten years. Generally, your score considers the size of your debt and the timing of late payments to establish the score reduction. Paying debts on time will always positively impact your score.

2. Understand Your Credit Utilization Ratio

Your credit utilization rate is how much you owe compared to how much credit is available to you. In other words, it's the total of all revolving debt, divided by the total credit and multiplied by 100 to form a percentage.

For example, if you have $4,000 in credit card balances and $40,000 in total available credit, your utilization rate is 10%. High credit usage negatively impacts your credit score. Typically, you shouldn't go above 30%, so do the following to reduce your ratio:

• Pay down the account balance.
• Open a new credit card to increase your maximum available credit.
• Consolidate credit card debt into one monthly payment.

3. Think Before You Close Credit Accounts

While it's tempting to remove/close old accounts once you've repaid them, try avoiding this practice since it can have a negative impact (unless you have to pay fees to keep them open). You can establish a long and positive credit history, improving your poor credit score.

4. Fix Errors On Your Credit Report

Credit bureaus can make errors — the Federal Trade Commission reported that 25% of people had errors on their credit reports. So, disputing mistakes can boost your credit score relatively quickly. If you are wondering how to dispute credit report errors, you can do this one, of two options. The first, send a dispute letter highlighting the error to the credit reporting agency, such as Experian or Equifax. The second, submit use the dispute form online to flag the disputed information on the credit agency website.

5. Take On New Financial Obligations Only In Emergencies

Finally, avoiding taking out new loans when they aren't needed is better. But if you are in a financial bind, you can get a bad credit title pawn online from us to borrow up to $15,000 to fund your crisis.

Our customer services allow you to use the value of your vehicle to offer the loan, ensuring you can access money regardless of your score or financial history. All you need to get a title loan is a car, truck, or van, a lien-free title, and your state-issued photo ID card (your driver's license is best here). The best part about our title pawn loans in Georgia is that the in-person process only takes 30 minutes! If approved, and agree to the terms and any fee associated with the loan, sign the paperwork to receive your money either the same day or the next business day.

If you’re worried about how title pawn loans affect credit, don’t be! Title pawns do not affect credit because they do not typically rely on credit alone for approval, and title pawn companies and lenders, like us, do not report to credit agencies. That means title pawn loans in Georgia will not help or harm your credit.

Get A Bad Credit Title Pawn Right Now!

Georgia credit repair services can be helpful when you are trying to improve credit score quickly, but sometimes a financial emergency hits home before you have the time to fix your bad credit score.

If you run into difficulties with your credit repair for bad credit journey, give us a call or complete our convenient online title pawns request form to get cash for your car title with Georgia Auto Pawn, Inc.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.