Laquanta Nicole Scruggs is a financial industry professional specializing in mortgage loans. In the following article, Laquanta Nicole Scruggs discusses credit scores, the significance and importance of maintaining good credit, and how to rehab a poor credit score for greater financial opportunities. Having bad credit feels like staring down a dark tunnel and not seeing even a sliver of light. A poor credit score means having difficulty renting an apartment or buying a car. One becomes saddled with fewer options for loans, and qualifying loans come with sky-high interest rates. But even the worst credit histories can be overcome with a little hard work and intentional financial steps leading to a brighter future. Here are some of the best ways to bounce back with better credit.

Laquanta Nicole Scruggs on Good Credit and Credit Repair

A credit score is the most accepted and accurate reflection of one’s financial status. It is almost always examined when one is seeking mortgages, credit cards, personal loans, auto loans and short-term debt relief. Laquanta Nicole Scruggs explains that the higher the credit score, the better the financial history. A FICO score ranges from 300 to 850, with a “good score” considered to be in the 670 to 739 range. Much of credit repair revolves around raising that credit score, but there are many different approaches. Credit repair can refer to a number of different actions, including taking steps to repair it on their own or seeking help through an outside party, such as a credit repair agency or debt-relief counselor.

Get All the Facts

The first step to repairing credit is understanding one’s credit status inside and out. Checking a credit report should be free through a bank or another platform. In the U.S., there are three major credit bureaus to work with in order to erase credit report inaccuracies stemming from collection agencies, creditors and debtors: TransUnion, Experian and Equifax. Laquanta Nicole Scruggs says that building good credit can take months, years or decades. Regularly reviewing a credit report helps one create an aggressive but realistic game plan to get better credit as quickly as possible.

Make a Plan

A realistic budget is often the key to getting out of financial holds. Credit scores are highly impacted by debt deemed excessive or by having too many credit card balances that are high. A budget can establish both a monthly spending plan and a repayment plan to lower debt.

Handle Finances Responsibly

Laquanta Nicole Scruggs says that this begins with always paying bills on time — always, always, always. Paying on time is arguably the biggest factor in establishing and retaining good creditworthiness. If this is a struggle, many have turned to automatic bill payments to cover a wide range of expenses every month in a set-it-and-forget-it sort of way.

Look into Credit Repair Companies

There are an estimated 70,0000 credit repair companies in the U.S., where 16% of people have credit considered “very poor” and 18% have credit deemed “fair.” Credit repair companies help people review long credit reports, identify issues and work directly with bill collectors or financial institutions to remedy any financially precarious situation. Finding a credit repair service with a good reputation is essential since many practice predatory lending behavior and offer poor financial advice. Laquanta Nicole Scruggs notes that many turn to credit repair companies if a credit score improvement is needed very quickly. Companies can help clients see positive changes in as little as a month when negative items on credit reports take as much as 10 years to go away naturally.

Consider Credit Alternatives

Depending on one’s situation, a different approach to credit may be the best route. A credit building loan is geared toward those who have no credit or bad credit. With this route, payments are sent directly to credit bureaus in order to help people rapidly build credit history and improve their scores. Such loans range from $300 to $1,000 and are commonly repaid over six months to two years. Laquanta Nicole Scruggs also notes that another option is a secured credit card. While it functions mostly the same as a normal credit card, a secured card uses an amount of money that has been set aside to cover default payments if needed. That helps build a better credit history because creditors and lenders are guaranteed payments. Laquanta Nicole Scruggs explains that a popular approach is becoming an authorized user on a credit card, typically one held in the name of a friend, family member or spouse. Authorized users are often not able to access the account or make changes to it but will see credit scores benefit if the primary card user is fiscally responsible.