Do you have such poor credit that you have trouble sleeping? The following advice will help in the path to getting your credit back on track.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. Your credit score can diminish with balances over 50%, so spread out the debt or pay off the credit cards.
Installment Account
To improve your credit rating, set up an installment account. You have to keep a monthly minimum on an installment account, so make sure you open an account that you can afford. You will improve your credit score by properly managing an installment account.
One of the first steps of improving your credit score is ensuring that your bills are always paid. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. You will notice how quickly your credit score increases when you start paying off those overdue bills.
Do not do things which could cause you to go to jail. There are plenty of credit scams that purport to erase your existing credit file and create a new one. Do not attempt this because it’s illegal; you will not be able to avoid getting caught. Penalties can include large fines and possibly even incarceration.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.
As part of your credit improvement process, it is a good idea to terminate all of your credit cards except one. You may be able to transfer balances to your remaining account. In this manner, you can take care of all your credit card debt by paying down a single balance.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. This will provide proof of your agreement in case any problems ever arise. Once the debt is fully paid, you need to get a statement verifying this from the creditor and send it to each of the major credit bureaus.
Filing Bankruptcy
If at all possible, avoid filing bankruptcy. It is noted on someone’s credit report for 10 years. It can be tempting to just go ahead and file bankruptcy to get out from under the debt, but the detrimental effects can be long lasting. Filing bankruptcy makes it difficult if not impossible to get anything involving credit, like credit cards and loans, in the future.
Pay off any balances as soon as you can. Pay down the cards with the largest balances and interest rates first. By doing this, you will show your creditors that you are trustworthy with your credit.
You will be able to keep up with your bills, and get a good credit score. Late payments to credit cards are reported to the major credit agencies and can hurt your chances for securing a new loan.
When lenders are looking at your credit, an explanation that goes with the report generally will not even be looked at. The less you can do to attract attention to negative reports, the better.
An instant solution to your problems is usually too good to be true, especially when that solution is some kind of “magic” debt relief being offered by a lawyer. Due to the huge amount of people with credit problems, lawyers have emerged and offer to repair credit for a huge fee, and most of the “repair” is illegal or useless. Investigate any lawyer thoroughly before contacting them for credit assistance.
In order to rebuild your credit, take baby steps to start improving your score. Consider a card that requires payment in advance; this will improve your score without the risk of failure. Potential lenders will see that you are working towards becoming more responsible with your credit.
Threats are illegal. If a collection agency is treating you roughly, you could sue them. Laws such as the FDCPA exist to stop debt collectors from harassing debtors.
Credit Counseling
If you have problems adhering to a budget, it may help you to consult a reliable credit counseling service to help you develop a budget that works for you. These services will help you communicate with creditors to make a simplified payment arrangement that will help you in the long-term. Good credit counseling can help you understand the best, easiest ways to oversee your finances and pay your financial obligations.
Maintaining a favorable credit score requires you to make all payments in a timely manner. Make use of payment reminders to help you remember to make your payments on time. There are several options that you can choose from. You can set up email reminders through your online banking or have text messages sent to you.
Credit Report
Now you know your credit report does not have to be a nightmare for you. It is possible to take control and repair your credit. If you follow the tips we have shared, you will end up with a credit report that many only dream of.