Bad credit can really detour your plans for your life in irritating ways. A bad credit score will make it hard for you to get a loan or apply for housing, among other things. Read on for some ways to fix your credit and reclaim your life.
There are secured credit cards available if your credit rating is too low to open up a regular credit card account. You will most likely be approved for this type of card, but you will have to add money to the card before you can use it so the bank will know that you can pay for all of your purchases. If you use a credit card well, your credit rating will begin rising.
If your credit card has a balance of over 50% of your limit, it should be your number one priority to pay it off until the balance is under 50%. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.
Installment Account
An installment account is a great way to increase your credit score. You need to review the terms of an installment account carefully, because you’ll be required to maintain a certain monthly minimum. If you use these accounts, your score will go up rapidly.
Paying off any debts you have that have high interest rates can help you to avoid paying too much. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. However, you agreed to pay the interests off when you signed the contract. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
Make sure you research a credit counselor before you visit them. There are some legit counselors, and there are some that have ulterior 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.
If you see errors on your credit reports, dispute them with the credit agency. Write a dispute letter to any agencies with recorded errors, and 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.
Credit Card
Check your credit card statement each month and make sure there aren’t any discrepancies. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
It is important to get any payment plan that you agreed to with a creditor in writing. If the creditor tries to change the agreement or if it the company is sold to someone else, you will have documentation to support your case. Every time you get a debt paid off, ask the company to notify the credit bureaus.
Look for a credit score improvement agency that is legitimate. Too many of these services will use your desperation to make money. Lots of people get taken in by scammers. Reading unbiased customer reviews will help you decide what company you want to work with.
If a credit collection agency or credit card company threatens you in a way that goes beyond the law, make a note of it. You are protected by law, and you need to know that.
Erase your debt. Potential creditors will look at your debt to income ratio. Having a significant amount of debt compared to your income means that many lenders will view you as a credit risk. It’s hard to pay off debt right away, so you need to come up with a plan and not deviate from it.
Credit Score
Since your credit score measures how often you are late on your bills, the best way to raise your credit score is to pay your bills promptly. Establishing payment reminders is a great way to ensure you will make your payments on time. There are many ways to set reminders for yourself. You can set them up on your banking portal and have the reminders sent to you in your email. Many creditors also send payment reminders via text message.
If you see a discrepancy on your credit report, be sure to double-check it. There are many things that can cause a mistake, and it can hurt your credit score just as much as a legitimate debt. This cam be easily handleD with a credit dispute.
It is important to document all of your communications with credit bureaus while you try to clear your credit report of inaccurate information. Make a note every time there is contact, including correspondence by email or postal mail. Make sure to keep records of any calls you get. Send any disputes by certified mail.
Begin rebuilding your credit score by making sure that all your monthly bills are paid on time. Even if you can only pay the minimum payment, you should still pay off some amount. One missed payment can significantly affect your credit score.
Easy tips, like the ones in this article, will help you repair your credit and keep it healthy in the future. Having a solid credit score can impact many important purchases that you make, so taking time from your busy schedule to read up on this subject is always a good idea.