I Missed A Payment On My Credit Card – Instant Credit Boost

I’m sure you’ve heard the term credit score before. It’s that 3 digit number that follows you & your financial life every where you go. You need it to get approved for loans, credit cards, houses, home mortgages & more! And since you never truly see it, it’s usually “out of sight, out of mind”– but this number is something that requires to be taken serious.

Though none of us like it, the fact that a credit score is so important to almost whatever we do financially is exactly why we said it needs to be taken major. It can take years to build up a great score and just a day or two to bring the entire thing crashing down.

I Missed A Payment On My Credit Card

Fortunately, there’s things you can do to protect and inform yourself on the topic. From tricks to give you a near-instant boost to your score to comprehending what a credit score even is from a essential level, we’re going to stroll you through this step by step. Prepare yourself to take control of your financial freedom at last!

What Exactly Is A “Credit Score”?

Simply put, a credit score is a number in between 300– 850 that illustrates a consumer’s (you) credit reliability. The higher ball game, the better the person seeking to borrow money or open a charge card looks to the possible loan provider. A credit score is based upon credit rating, which includes:

  • Number of open accounts
  • How much debt is currently open
  • Repayment history
  • Number of hard inquiries
  • Age of credit history
  • Any derogatory marks

Lenders use credit rating to examine the likelihood that an individual will repay loans on time and in full (or as determined in the loan arrangement). It’s worth noting that it’s not constantly a smart concept to close a charge account that is not being used since doing so can reduce your credit score by affecting your credit rating age & amount of open credit readily available to you.

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The credit score model was created by the Fair Isaac Corporation ( frequently known as FICO), and it is utilized by banks like banks. While other credit-scoring systems exist, the FICO score is without a doubt the most frequently utilized.

Having problems with your credit? There are a variety of methods to improve your score, including paying back loans on time, settling charge card on a monthly basis, and keeping financial obligation low. We will enter raising your credit score even more in the article.

How Do Credit Scores Work, Anyway? I Missed A Payment On My Credit Card

A credit score is a substantial aspect of your financial life. It plays a key role in a lender’s choice to state “yes” or “no” to your loan or credit card application. For example, individuals with credit scores below 640 are usually considered to be subprime borrowers.

Lending institutions often charge interest on subprime mortgages at a rate higher than a conventional mortgage in order to compensate themselves for taking on a high danger borrower. Depending on how low your credit score is, they might also require a shorter payment term or a co-signer.

On the other hand, a credit score of 700 or more is typically considered great and might result in you (the debtor) getting a lower rates of interest. On loans like home mortgages, a somewhat slower rate of interest can end up saving you tens of countless dollars over the repayment term!

Scores greater than 800 are thought about excellent. It’s worth noting that while every financial institution defines its own varieties for credit scores, the following FICO score range is typically used:

  • Excellent: 800 to 850
  • Very Good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Poor: 300 to 579

In short, your credit score is a mathematical analysis of your credit reliability and directly impacts just how much or how little you may spend for your credit. Your credit score can also identify the size of a deposit needed on products like phones, utilities, or apartment or condo rentals.

How A Bad Credit Score Is…Bad

As discussed previously, a bad credit score is anything below 670. If you want to get more particular, a score varying in between 580-669 is considered “fair”, while anything in between 300 and 579 is considered “poor”. This is going off the FICO scoring that’s most typically utilized.

Not sure what your credit score is? Click here to get your score from all 3 major bureau’s. It’s free!

Having a bad score can stop you from doing a lot of things. This includes getting authorized for better charge card, mortgages, homes, individual loans, business loans, and more.

Plus, any loans or charge card you do get authorized for will be far more expensive (as mentioned above). This is due to the fact that lenders charge much greater interest rates to those they deem “high risk” in order to offset the extra threat they feel they’re taking by loaning you money.

How do they get more pricey? By charging greater rates of interest. For example, if you get a $10,000, 48 month loan on a car with a 3.4% rate of interest, you’ll pay about $704 in interest throughout the loan. If you secured that very same loan with a 6.5% rate due to bad credit, you ‘d pay about $1,376 in interest. That’s nearly double!

What Can I Do About A Bad Credit Score?

Think you have a bad score? Do not stress– there’s great news: credit scores aren’t fixed! Your score will alter when the details in your credit report changes. That suggests you can take control of your financial health now by making changes that will favorably impact your credit score with time. Here’s a couple of things anyone can quickly do to get started:

  1. Take Advantage Of FreeScore360 by ScoreSense – If you want to improve your score, you need to be able to check it regularly & be sure you’re getting accurate data. That’s where FreeScore360 comes in. They allow you to easily check your score at all 3 major bureau’s, as well as providing daily credit monitoring, alerts, and $1 million in identity theft insurance. Plus you can try it for free here!
  2. Secured Credit Card – Just make an initial cash deposit (which usually becomes your credit limit). You then use the card like a routine charge card and build your credit. Make sure to always pay your bill on time and keep the balance near to $0 as possible.
  3. Credit-Builder Loans – The loan amount is launched back to you after the loan is settled. Always make sure the loan provider ( normally a credit union or neighborhood bank) will report your payments to the three major credit bureau’s.
  4. Become an Authorized User – If someone with a great score & a long record of on-time payments and low credit utilization is willing to add you as an authorized user to their charge card, your credit will benefit by having that card added to your report.

When it pertains to taking control of your financial resources and bettering your credit score, you have options. Use FreeScore360 to discover what your genuine score is, then take a seat and make a plan of attack. Improving your score will require time, but it doesn’t have to be tough! Good financial routines like paying off your charge card monthly will take you a long way towards that financial liberty.