You need to know what you owe and the companies to which you owe money before it is too late and still more debt is created. So now it is time to exercise crisis management and to repair your credit score. To repair your credit, follow the following advice.
If you have a poor credit history and can’t qualify for a credit card, get a secured card. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. By using a new card responsibly, your credit rating will start to increase.
Try an installment account to get a better credit score and make some money. Open an installment account that you can pay for and make sure to keep an affordable monthly minimum on it. If you use these accounts, your score will go up rapidly.
Work with the companies to whom you owe money to get your debt back under control. By keeping the lines of communication open, you will avoid getting into more debt, making your credit score even worse. Do not be afraid to call your credit card company and ask if you can make changes to your due date or your minimum payment amounts.
Don’t do anything illegal. Scams abound on the internet that show you how to change your credit file. Of course, this highly illegal, and it will cause you even more problems, because it will not go unnoticed. Not only can legal fees add up, but you could end up in jail.
Find out how the process will affect your credit rating before you agree to any debt settlement agreements. There are methods that are going to be less damaging than another, and all should be researched before you enter an agreement with a creditor. Some of these creditors are only concerned about getting their money, and not how it will affect your credit.
Credit Unions
Joining a credit union may be a way to boost your credit score when you are having a hard time getting credit. 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 see errors on your credit reports, dispute them with the credit agency. Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. Make sure that you ask for a return receipt so that you know your letter makes it to its intended destination.
Check over your credit bill each month to make sure there are no errors. If you spot any late fees, immediately contact your credit card company. This can save you from having late payments reported to the credit reporting agencies.
Payment Plan
If a creditor agrees to give you a payment plan, get that payment plan in writing. This is for your protection. It allows you to have valid documentation of the terms in the event that a creditor reneges on its offer or changes owners. When the debt is eventually paid or settled in full, you should request documentation of this and forward copies to the primary credit reporting companies.
Bankruptcy should be filed only if absolutely necessary. The record of the bankruptcy appears on your report and affects your credit rating for up to 10 years. It might seem like a good thing but you will be affected down the line. It could be near impossible to receive a credit card or loan if you have filed for bankruptcy.
Work with a credible credit score improvement service. The industry unfortunately has some agencies that fall short on their credit score improvement promises. A fair number of people have been scammed by these unethical credit score repair companies. Read reviews online to help you choose the right agency for you.
Unfortunately, no financier is going to be interested in the statement you provide when they are examining your credit history. Trying to defend bad credit may actually draw their attention to the area and cause more problems than it would have originally.
Keep your credit cards in your wallet. Pay for everything you buy with cash instead. If you must use your credit card, pay it back in full.
Credit Score
When attempting to fix your credit score, exercise caution when it comes to attorneys and legal teams that advertise instant repair of credit. There are a lot of scam lawyers out there who will charge you a lot of money for credit score repair techniques that don’t really do much. Do your homework and check out any attorney before you hire one to help with credit repair.
It can be terrible to deal with having multiple different debts that you are unable to pay. Try to make sure that you find a little bit of money in your budget for all the creditors you owe payments to. Even if it’s only minimum payments, send as much as you can to each creditor in order to avoid them sending your account off to collection agencies.
As you are now aware from this article, common sense is the prevailing wind that will sail you to better credit scores. You can find those waters by sailing with these tips.
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