Are you struggling with your bad credit? A lot of credit scores are going down during this difficult economic time. This article will teach you how to protect and improve your credit.
Interest Rates
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. There are laws that protect you from creditors that charge exorbitant interest rates. However, you signed a contract agreeing to pay off interests. If you plan on suing your creditors, you may be capable of having the interest rates viewed as being too high.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. Your credit score will increase if you are consistently paying back your debts.
When you are trying to fix your credit record, call your creditors and make payment arrangements that will benefit both of you. If you do this you will not go into debt more and make your situation worse than it was. It is perfectly appropriate to call and request an adjustment to your interest rate or to push back a payment date if needed.
Before you commit to a settlement, you should first determine exactly how the agreement will affect your credit. Some agreements won’t hurt you as much as others. This is why you should research all of the available ones for you before signing an agreement. Creditors are only trying to get the money that you owe them and could care less how that hurts your credit score.
Credit Report
Make sure you review all of the negative marks against you on your credit report. 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.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.
Filing Bankruptcy
Do everything you can to avoid filing bankruptcy. Filing bankruptcy negative effects your credit score for 10 years. This may appear to be a wonderful idea where you rid yourself from all this debt at once, but in actuality it causes more harm than good. If you do file for bankruptcy, it will be extremely difficult to get approved for a loan or a credit card for many years, if ever.
Begin the process of credit score improvement by trying to pay down your credit card balances as fast as you can. Pay down the cards with the largest balances and interest rates first. This effort will show the credit card companies that you are trying to pay your bills and be responsible.
Find a legitimate credit score improvement agency to work with. There are many scams that happen in the industry of credit score improvement. Far too many people have been bilked by dishonest agencies. Read reviews online to help you choose the right agency for you.
One of the most stressful aspects of handling bad credit is dealing with debt collection agencies. Make sure you know that cease and desists of any type can only stop you from being harassed, you’re still going to be in debt. Sending the letter does not mean you no longer have to pay the bill, it only stops the collection agency from calling.
Don’t believe the hype of lawyers or other offices that promise they can immediately fix your credit score. With so many people struggling, scammers are taking advantage of their desperation by offering them fake or fraudulent credit services. Prior to contacting any lawyer for help fixing your credit, investigate him or her thoroughly.
It’s especially painful to have a lot of different debts that you can’t pay all at once. Split your available funds and make sure that you make payments on each of your debts. A small part payment is always going to be preferable to those you owe money to than no payments at all. By making regular contributions to your debts, you should be able to keep the collection agencies at bay.
If a poor credit rating has left you feeling discouraged, turn your situation around by applying the guidelines you have just read. This advice can make all the difference between having a bad or good credit score.
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