Credit Repair Tips: Raise Your Scores

There are millions of bad credit scores out there today. It’s no surprise, not with a poor economy, rising living costs, stagnant wages, and a nasty employment market. The following tips are presented to help you improve your credit score and help you be more disciplined with your money.

Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. Credit card balances are among the factors taken into account when determining your credit score. Maintaining balances over 50% will lower your rating. You can attain lower your balances by using balance transfers to move debt from accounts with higher balances to those with lower balances, or by simply paying off some of your higher balances.

Credit repair requires that you begin paying your bills. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. Your FICO score will begin to increase immediately after you pay the bills that are past due.

You need to work with the companies from whom you have credit cards. Talking to them will help keep you from drowning further in debt and making your credit worse. You can accomplish this by simply calling and asking them to change payment terms, like your interest rate or your billing date.

When trying to repair your credit, research any credit counselors you consider using very thoroughly. You will find some counselors that truly want to help you fix your credit situation, while others may have different motives. There are a lot of people out there that are trying to take advantage of those who are down on their luck. Intelligent customers will make sure to determine the legitimacy of a credit counseling agency before acquiring their services.

Don’t do anything illegal. There are various online scams that involve creating a fresh credit file. Do not think that you can get away with illegal actions. 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 agree to any sort of repayment plan to settle your debts, consider how this will affect your credit score. Some methods of credit settlement can be a blow to your credit score, so it’s important to check into your options and find one that won’t hurt you in the long term. They are just out to get their money and do not care how that effects your credit score.

Read your negative reports carefully when attempting to rebuild your credit. You could find mistakes in dates and other factors which can cause the whole item to be removed from the report.

Credit Unions

Joining a credit union is a great way to build your credit if you are having a difficult time doing so elsewhere. Credit unions typically offer a wider variety of credit options at better interest rates than a traditional bank. Credit unions are usually non-profit, which means better deals for you.

If you find a mistake on your credit report, be sure to dispute it! Include proof along with a letter disputing the claim to the agency that recorded the errors. Make sure when you send the dispute package that you request proof by signature that it was received.

If you are currently spending more than you earn, you need to quit that immediately. This takes time and a change in attitude to accomplish. A lot of people rely on credit to maintain an unrealistic lifestyle, but when the credit runs out, all that’s left is a very big bill. You should look at what you can afford to spend, before using credit for purchases.

Close all your credit cards except for one as a means of repairing your credit. Transferring multiple balances to one single card is a way to gain control of your finances. By doing this, you can work towards completely paying off one credit card with a large debt, rather than working piecemeal with many smaller debts.

To fix damaged credit, pay off your credit card balances as fast as you can. First, work on the accounts with the highest interest rates and the highest balances. Creditors will see this action as a sign that you are responsible and educated.

When you pay your bills on time, you are keeping your credit score high. Every late payment appears on a credit report, and could potentially hurt your chances at a loan.

Avoid using your credit cards at all. Stick to your budget by only spending the cash that you have allocated for spending. If you have to make a purchase with your card, pay it off right away.

Create a plan to settle all of your unpaid and past-due accounts. Until your debts are paid off, they will still appear on your report, but current payments will reduce their negative impact.

Seek advice from a trustworthy credit counseling service if you are having difficulty managing your debt. Often times, these companies will work with the creditors to get negotiate a lower interest rate and an affordable payment plan that will help get your finances back on track. Working with a credit counselor can help you learn to budget your money.

Now you know how to repair your credit score, so get started on a plan of action. Don’t let poor credit affect your life any longer. Use the tips presented here to repair you score and your overall financial health.