Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. Fortunately, there are actions you can partake to reverse this.
If credit restoration is your goal, create a plan and stick with it. Be totally committed to changing your spending habits. Only buy what you absolutely need. Before making any purchase, determine if it is within your means and if it is indispensable. Don’t buy the item unless you answer “yes” to both of these questions.
Try to get a secured credit card if you are not eligible for an unsecured card. This will help you fix your credit. Anyone can get one, but you must load money onto the card as a type of “collateral”. Limited spending and regular payments can turn a new credit account into a valuable credit improvement tool.
Credit Score
A respectable credit score makes it much easier for you to purchase a home with a mortgage. Timely mortgage payments augment your credit score. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. This will also be useful in the event that you end up needing to borrow funds.
If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. It is necessary to at least pay the minimum, so insure the account is something that you can pay. If you are able to keep up with one of the accounts, you should see your credit score improving quickly.
Avoid paying off high interest rates so that you don’t pay too much. If you are being charged a distressingly high interest rate, you may be able to talk to your creditor. However, when you signed up for the line of credit you also agreed to pay the interest. Should you sue any creditors, it is important to push the fact that the interest rates are outrageously high.
Before using a credit counselor, it’s important to research them completely. There are some counselors that are real, while others are basically scammers. Many others are nothing more than scams. It is smart to verify the legitimacy of credit counselors prior to getting involved with them.
Call and request lower limits on your cards from the credit card companies. It will pay off in lowering the risk of excessive borrowing and reflecting good financial decision making on your behalf.
Credit Score
Before you agree to any sort of repayment plan to settle your debts, consider how this will affect your credit score. 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. The creditor is only interested in receiving the money due, and is not concerned with your credit score.
If you are doing hardcore credit score repair, you need to scrutinize your report for negative entries. Errors are not infrequent in credit reports. If you can prove the credit bureau is in the wrong, they should correct the reported error or remove it entirely.
Credit Card
Look through your credit card statement each month and make sure that it is correct. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
This helps you retain a proper credit status. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
Credit Improvement
When working with a credit improvement agency, it is imperative to find one that is legitimate. There are plenty of credit score improvement agencies that don’t follow through with their promises. Sadly, many people have fallen for credit improvement scams. If you read enough reviews, you can find out which ones are good and which are bad.
Avoid using your credit cards at all. Stick to your budget by only spending the cash that you have allocated for spending. If the purchase you’re buying is more than you can currently afford you can use a credit card, but pay it back as soon as possible.
Having to deal with debt collectors is often very stressful and distressing. Cease and desist correspondences can be legally used by a consumer to put off collection agencies; however they only help stop the harassing phone calls. You may be able to stop the deluge of calls from a collection agency, but the debt must still be dealt with.
It can seem impossible to repair your credit score, but just knowing what the steps are and making a plan can make it seem much less intimidating. Take the advice that has been provided in this article to start making positive steps toward better credit.
This is a limited-time offer. We are not able to guarantee availability if you wait!
