Is it Possible to Buy a Better Credit Score?By Caitlin in Credit
While most people believe that money can fix all problems, it’s not necessarily true. Obviously issues like credit card debt can be fixed with money as simply putting more money towards your debt is the only solution. But, there are issues, even financial ones that cannot be fixed by throwing money at them. A low credit score is unfortunately one of those issues that money can’t always fix.
Your credit score is blind to appearances and is only affected by the financial decisions that you make. Even if you have built yourself a fortune through hard work, if you make bad financial mistakes your credit score will reflect them. If you mess up your finances you will pay the price through your credit score.
Here’s why it’s difficult to buy a good credit score.
Your credit score remembers all financial decisions.
Your credit score holds a grudge like no else can, it remembers all the good and bad financial decisions that you make and will hold them against you. Different credit bureaus have slightly different ways of scoring your credit but no matter what, paying off your past due debt won’t remove it from your credit history. If your bad debt ends up being a collections account and you have debt collectors coming after you your credit score can reflect that issue for years.
If you end up going to court for your debt and there is a court ordered judgement placed on your debt, not only will your credit score be negativity affected but your lender might be able to garnish your wages or take the money you owe them. This will all show up on your credit report and unfortunately no amount of money thrown at the situation will be able to buy you a good credit score.
Your credit score doesn’t care about your income or expensive house.
Your credit score is not easily persuaded by high incomes, expensive homes or fancy assets and equally, it doesn’t place judgement on low incomes and small homes. There are millionaires who have bad credit scores and people with minimum wage jobs who have good credit scores. It’s all about the financial decisions that you make. If you don’t pay your debts off in time, irresponsibly use your credit cards and never worry about savings then no matter what your income is, you’re credit score will reflect those bad decisions.
There are many financial experts who believe that income should be used in the calculation of credit scores. Since this method has yet to be adopted don’t let your income, whatever it may be, cloud your judgement when it comes to your credit score.
Credit repair firms aren’t miracle workers.
Credit repair firms do exist and they will work with you (for a fee of course) to help you repair your credit history in hopes that it will improve your credit score. People who are trying to build or rebuild their credit scores and are having a hard time or don’t want to deal with the time it takes often hire these kinds of firms. A credit repair firm can be an asset as credit report and scores are confusing and hard to decipher, but they aren’t miracle workers and they can’t magically improve your credit score. Credit repair firms help by looking over your credit report and double checking all the items listed, they look for things that can be disputed and then removed in hopes that your credit score will then improve. They can also help with collection agencies by trying to negotiate the removal of the account from your report.
While this all may seem great for someone who is desperately trying to improve their credit score, in reality most of these things can be done without the help of a credit repair firm. If you are willing to learn about credit reports and scores then there is no reason to pay someone to help you, especially when the chance of finding a mistake on your credit report is relatively low.
The Best Way to Get a Good Credit Score? Patience and Hard Work.
When dealing with any financial situation your credit score can play a big role and therefore it’s understandable that some people desperately seek out any option to raise theirs. But unfortunately, a credit score is simply one of those things that can’t be bought and must be earned. If you want a good credit score then there are several simple and easy things that you can do. Pay your bills on time and in full, don’t abuse your credit cards, stay organized and keep track of all financial documents. Hard work, patience and smart spending are cornerstones of a high credit score. To learn more about maintaining strong credit, click here.