Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you’ve probably damaged your credit. The good news is that there are some things that you can do to repair your credit.
A secured credit card might be a good option for the person with a poor credit score. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. If you use it correctly, a new card can help you fix your credit.
If you have credit cards where the balance is more than half of your credit limit, then pay them down until they are below 50% utilization.
Credit Score
By keeping your credit score low, you can cut back on your interest rate. It will lower your monthly payments, so your debt will be taken care of at a much quicker rate. Take advantage of special offers and favorable interest rates to secure manageable credit payments and a good credit rating.
A good credit score should allow you are more likely to get a home. Making regular mortgage payments in a timely manner helps raise your credit score. This is helpful if the time comes where you need to take out a loan.
You can dispute inflated interest rates.Creditors are skirting aspects of the law when they try to charge you with high interest rates. You did however sign a contract saying that agrees you will pay off the debt. You may wish to make a legal claim that the interest rates are too high if you want to sue your lenders.
Paying your bills is something you need to do to repair your credit. Paying your bills on time and for the full amount is important. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
If a company promises that they can remove all negative marks from a credit report, even those properly reported. Negative entries that are otherwise accurate will stay on your record for seven years.
You should always make an effort to pay them on time and in full. Your credit score starts to improve immediately when you pay off past due bills.
If you are trying to repair your credit, check all of your negative reports very carefully. You could find mistakes in dates and other factors which can cause the whole item to be removed from the report.
You need to work with the companies from whom you are trying to improve your credit. This will help you want to handle your situation and keep you from getting even further behind.
Make sure you research into any credit score repair agency or counselor before you do business with them. Many counselors are honest and helpful, but some are outright scams. Some are nothing more than fly-by-night scams.
As part of your credit repair process, it is a good idea to terminate all of your credit cards except one. It is important to make small payments or transfer a balance to the open account. Doing this will allow you to focus on paying off one large credit card bill, instead of several smaller ones.
Do not get mixed up in illegal activities. There are many different places that will show you how to establish an additional credit profile. Do things like this can get you will not be able to avoid getting caught. You could end up in jail if you are not careful.
Contact your creditors and see if you can get them to lower your credit line. Not only will this prevent you from owing more, but it can also imply that you are responsible to those companies and to any future companies.
When you receive your credit card statement, go over it carefully. Take a second look to make sure that you are being charged only for what you actually purchased. You bear the responsibility for looking after your own best interests, and you are the only person who will know if your statement is accurate.
Credit Score
Some agreements cause less damage to your credit score than others, so it’s important to check into your options and find one that won’t hurt you in the long term. Creditors just want their money that you owe them and really aren’t interested on how that hurts your credit score.
A nasty credit crunch can generally be caused by lacking the funds to pay off multiple debts. Try to divide all your available money between your creditors, so you can pay everyone at least something. Paying at least minimum payments prevents creditors from calling collection agencies.
Joining a credit union is a way to build your credit if you are having a difficult time doing so elsewhere.
Dispute every error you find on your credit reports.
Work out a plan of attack where you can pay off collectors and any other accounts that are past due. These things will still appear on a credit report, but they will be marked paid, which is better for your credit.
In order to start repairing your credit, focus on closing all accounts except one. You should arrange to make payments or make a balance transfer to your remaining account. This will let you to pay off a single account rather than many small ones.
If you are determined and ready to learn, you can fix your credit in no time. Utilize the above information to start the journey of improving your credit score.
Pay down your debt now. When creditors are assessing your risk, they want to see a high income to debt ratio. If you owe too much in comparison to your income, you will be seen as a bad credit risk. Since most people can’t pay off all of their debt at one time, the best solution is to create a debt reduction plan.