Why bad credit shouldn’t be a life sentence

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JACKSONVILLE, Florida. – Whether they are good or bad, credit ratings affect everyone’s life.

However, for many people, when they realize the importance of a good reputation, it may be too late.

“If you had late payments, it would take 24 months of timely payments to fix the situation,” said Mary Svoboda, interim president of Jax Federal Credit Union.

Svoboda believes that paying those who claim to be able to quickly fix your credit is a waste of money.

“It can cost you several hundred dollars and you can do it yourself,” she said.

Svoboda says that those fast-fixing companies check your credit report for inaccuracies and then challenge them. She explains how you can do it yourself instead.

“Check your credit report,” she said. “If there is something, it is very easy to dispute it directly with the lender or through the online process with the credit bureaus. So you don’t have to pay for it. “

Why bad credit shouldn't be a life sentence
Why bad credit shouldn’t be a life sentence

If there are any positives about the coronavirus pandemic, it is that all three major credit bureaus – Experian, Equifax, and Transunion – allow anyone to check their credit every week without any penalties. Previously, this could only be done three times a year.

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Liberty added that Experian Now Offers Credit Enhancement Service it’s free and can help boost your score.

“The credit report will be linked to your bank account, and through your bank account, they can see that you have regular deposits and are paying your utility bills and cell phone bills and the like on time,” she said.

Svoboda said some of the most common mistakes she sees when it comes to credit is that people have too many credit cards. She said this should be avoided when you start building up your credit.

“Sometimes it’s terrible, you see people who have 20 or 30 credit cards, so it’s a bad idea,” she said.

All of this should be avoided when you start building up your credit.

If you want to get a loan but need help living within your means, Svoboda recommends getting a so-called secured credit card. It’s like a debit card where you can only spend what is in your account. But unlike a debit card, a secured credit card creates credit.

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What if you are taking steps to fix your credit but can’t wait and need a loan now?

“Right now I would advise someone to do, if you really don’t have a loan, bring me your bank statements and show me,“ Look at this. I paid the rent of $ 600 on the first of the month during the year. ” I’ll say, “Let’s make this loan,” Svoboda said.

While you are rebuilding your credit score, Liberty says you have to take care of it, make it important, and review it. Because a bad credit rating doesn’t have to be a life sentence.

Copyright 2020 by WJXT News4Jax – All rights reserved.

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