Keeping track of who you owe and what you owe can help prevent formation of debt. At this point, you need to roll up your sleeves and start doing what is needed to fix your credit. Follow this easy advice to get your credit back on track.
It’s easy to lower your interest rate by ensuring your credit score is high. Lower interest rates will reduce the amount of your monthly payment, and can also make it easier to repay your debt faster. Asking for a better deal from your debtors can help you get out of debt and back to achieving a better credit score.
Credit Score
If you credit score is good, you should have no problem purchasing a house and obtaining a mortgage. Keeping up with all of your mortgage payments will help pull your credit score even higher. Credit rating companies will judge you a reliable risk when you have verifiable assets such as a home. These benefits will pay off if you need to secure a loan.
Try an installment account to get a better credit score and make some money. An installment account requires a monthly payment, make sure you can afford it. Keeping an installment account will help your credit score.
You must pay your bills consistently if you want to repair your credit. Paying your bills on time and for the full amount is important. As soon as you start paying off your bills so that they are not late, your credit score will immediately start going up.
Due Date
Stay in touch with credit card companies if you wish to repair your score. You should contact the company and request a lower interest rate or a due date change if necessary. Talk to the company and see if you can change your due date or monthly fees.
If an action can result in imprisonment, draw the line. The web is full of scams that show you how you can craft a deceptive credit file. This is illegal and you’ll get caught. They may seem like a small matter, but if you get caught, you could receive heavy fines and even jail time.
Credit Score
Before you sign any debt settlement, research what effects it will have on your credit score. Research all of your options, make an informed decision about the method you chose, and only then should you agree to the settlement. They do not worry about how your credit score looks; they want to get money.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Sending your letter by certified mail provides you with proof that the letter was received.
Credit Card
One excellent way to get your credit score back up is to close all your credit cards except for one. You can transfer all of your balances to one credit card, ensuring you choose the one with the lowest interest rate. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.
Take the time to ensure each month’s credit card bill is correct. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.
If you and your creditor decided to set up a payment plan, you should first get the details of the plan in written form. This provides you with documentation that an agreement is in place in case the company changes hands or the creditor tries to change the terms of the agreement. When you pay it off, send a written copy of proof of payment to all three credit reporting agencies.
It is important to read all credit card statements you receive. Make sure the charges on your credit cards are accurate. You should ensure everything is okay and does not have any errors.
To keep your credit in good standing and get a better score, maintain a low balance on revolving accounts. You can up your credit score by just keeping your balances lower. When balances are 20, 40, 60, 80 and 100 percent of the total credit available, the FICO system takes note of it.
Debt Collectors
Having to deal with debt collectors is often very stressful and distressing. You can use a cease and desist letter to stop any harassment from collection agencies. Remember, even when the debt collectors stop annoying you by phone, your obligation to pay what you owe is not alleviated.
It can be terrible to deal with having multiple different debts that you are unable to pay. Spread your money among your creditors so that they each get a part of what funds are available. Even if the payments you are making are the minimum ones, these small payments will still somewhat please your creditors, which will likely stop them from getting in touch with collection agencies.
Good credit starts with rebuilding. Prepaid or secured credit cards can help to rebuild your score without late payments or going over your limit. This will help you prove to lenders that you can be responsible, and are credit worthy
It is not legal for collectors to threaten you, so always report them if they get too aggressive. Find out more about laws specific to your state regarding the protection of customers.
You probably noticed that in order to repair your credit score, you really need to use common sense. You can easily achieve your goal by using these tips.