Frequently Asked Questions(FAQ)

How can I make my rent and utility payments count towards my credit score?

In most cases, your rent and utility payment history is not reported to the credit bureaus. However, if you are trying to improve your credit score, you may want to sign up for a program such as Experian Boost. This program improves your credit scores and builds your credit history using utility, phone, rent, and streaming service bills you pay every month. And it only takes five to ten minus to sign up.

How long do derogatory marks stay on my credit report?

Derogatory marks from collections accounts, bankruptcies, foreclosures, etc., can stay on your credit report for as long as ten years. Even a car repossession can stay on your credit report for seven years. To prevent these things from happening, take the appropriate steps to manage your budget wisely. And, always pay your bill on time. If you are unable to pay your bill in any given month, contact your creditor to discuss options before you miss the payment deadline.

How can I fix my credit score in 6 months?

The six best ways to fix your credit score in six months include the following:

  • Pay your bills on time every month
  • Ask for a credit limit increase or pay down your balance to improve your utilization
  • Be mindful when applying for new accounts
  • Keep existing credit card accounts open, even after you have paid them in full
  • Check your credit score often and check your credit report a least once per year for errors
  • Be patient - it takes time to build good credit 
How does my credit score impact borrowing limits?

Your credit score is a measure of your credit risk. If a creditor views you as a safe risk, they will be more likely to offer you credit. If you are a higher risk, they may still offer you credit but at a higher interest rate and a lower borrowing limit. Keep paying your bills on time and watch your credit score improves. After a while, you’ll have more spending power through increased borrowing limits.

What is the difference between secured and unsecured loans?

The primary difference between a secured loan and an unsecured loan is collateral or the requirement of a security deposit. Collateral is an asset such as a car, house, or boat. Secured debts require collateral and give the lender something to go after if you fail to pay. However, you should know that secured credit cards and loans are a great option if you want to improve your credit.

About the Authors

Ann Bloomquist

Written by: Ann Schreiber

Seasoned Copywriter & Content Marketer

Ann have been a marketer and a content writer for over 20 years. She have worked for financial institutions such as FICO, Experian, and BlueChip Financial as a director of content and brand marketing.

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