With this downward economy, it is no surprise that millions have poor credit scores. However, the following article gives you some helpful advice on different steps you can take to clear up your debt and improve your credit rating.
Any of your credit cards with balances that are above 50% of your overall limit need to be paid off as soon as possible, until the balance is less than 50%. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
Opening an installment account can give quite a boost to your credit score. You have to keep a monthly minimum on an installment account, so make sure you open an account that you can afford. If you use these accounts, your score will go up rapidly.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. These bad marks stay on your record for seven years or more. You can, however, succeed at having incorrect information erased from your credit reports.
Work closely with all of your creditors if you are aiming towards repairing your credit. 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.
Take a look at your credit report if you have a bad score. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.
If you find inaccuracies on your credit report, make sure to dispute them. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. When you mail your dispute package, be sure to make arrangements for confirmation of receipt. In this way, you will have documentation that your information has been received.
If you are currently spending more than you earn, you need to quit that immediately. You you need to rewire your thought process. If you’re buying flashy items to boost your reputation, consider that a smart person who isn’t being chased by collectors will have an even better reputation! Take a hard look at your financial situation to come up with a realistic spending plan.
Make sure you will get a plan in writing if you decide a payment plan is the best option for you with your creditor. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. Finally, when it is paid in full, get documentation thereof to submit to credit agencies.
Try not to file for bankruptcy. The fact that you filed for bankruptcy is noted in your credit report and will stay there for 10 years. While getting rid of your debts all in one go seems like an excellent idea, your credit will be affected by it for a long time to come. By filing for bankruptcy, you might have a lot of trouble getting a credit card or qualifying for a loan in the future.
In order to start repairing your credit, you should try to pay down the balances on your credit cards as quickly as possible. It is a toss up as far as which cards are best to pay off first – some choose ones with the highest interest rate, others choose the card with the lowest balance. This effort will show the credit card companies that you are trying to pay your bills and be responsible.
Credit Card
To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. Look for any changes that have happened, and make sure they are correct. You do not want to end up paying for a purchase that you did not make. Take the reigns, and go over your monthly credit card statements. No one else will do it, it is your responsibility.
Since you should now have a better understanding of different ways you can use to begin fixing your credit scores, take immediate action to implement them. You should take action before your credit gets worst, at least to slow down the process.