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 take steps to begin to repair your credit.
There are secured credit cards available if your credit rating is too low to open up a regular credit card account. Secured credit card applications have a high rate of approval because you must fund a security deposit against your credit limit. Using this new credit card in a responsible manner will help to build back up your good credit rating.
If you need a credit card to aid in fixing your credit but you cannot obtain one due to the state of your credit, get a secured card. If you get a new card and use it responsibly, you will go a long way in repairing your credit.
If you have credit cards with a balance that exceeds 50% of your credit limit, you should pay it down to below 50%.
If someone promises you to improve your score by changing your factual history, this is a scam. Negative info stays on your history for seven years! Stay mindful, however, of the fact that false information can be stricken.
You will be able to buy a mortgage if you have a good credit rating. 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.
Interest Rates
Make sure you thoroughly research into any credit repair agency or counselor before you do business with them. The industry is rife with fraud and people with ulterior motives, so finding a legitimate credit counselor can be challenging. There are many scams out there. Knowledgeable purchasers will always make sure that the credit counselor in question is legitimate before hiring.
You can lower your debt by refusing to acknowledge the part of your debt that has been accrued by significantly high interest rates if you are being charged more than you should be. Creditors are skirting a fine line of the law when they try to charge you exorbitant interest rates. You did sign a contract saying that you would pay interest. You need to be able to prove the interest rates are too high if you want to sue your state’s statutory limits.
If you want to fix your credit avoid companies claiming they can remove all of your issues, this is a scam. Negative credit information remains on your history for up to seven years!
It is crucial that you review credit card bills on a monthly basis to check for errors. If there are late fees, you have to make sure that you take care of them immediately with the company so that they don’t send that information to the credit bureaus.
You should consider talking to directly with the companies from whom you have credit cards. This will assure them that you stabilize your debt and keep you from getting even further behind.
Be very wary of credit score repair scams that can get you in legal trouble. There are schemes online scams that will show you how to establish an additional credit file. Do not attempt this can get you into big trouble with the law.You may end up in jail time.
If you need to repair your credit score, you should pay your credit card balances as fast as possible. Always pay off the card with the highest interest rate first and then work you way down. Doing so shows your creditors that you are taking your debt problem seriously.
Contact your creditors to request a reduction in your credit limit. Not only can this tactic prevent you from getting yourself in over your head with debt, but it will be reflected in your credit score because it shows that you are responsible with your credit.
With some hard work and guidance, you can easily fix your damaged credit and help receive the rating that you deserve. With the advice you were given in the above article, you can get to work on improving your credit score today.
Don’t fall prey to law offices that promise you instant credit fixes. Since there so many people struggling with their credit today, there are a lot of businesses that have popped up to take advantage of the situation. Make sure any credit repair service you consider has a positive standing with the BBB.