It’s no surprise that there are so many people facing the hardships of bad credit today given the current state of the economy, yet don’t become discouraged because of this. These tips will help you get a healthier score.
For a credit score boost, an installment account will help. You have to keep a monthly minimum on an installment account, so make sure you open an account that you can afford. Paying on time and maintaining a balance will help improve your credit score.
Interest Rates
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. You did sign a contract saying that you would pay off the debt. You can consider suing your creditors if 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. There are many scams out there. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.
If you come across a mistake on your credit report, don’t hesitate to dispute it. You should contact the credit bureaus both online and by certified letter; be sure to include proof of your claims. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency.
Don’t spend more than you make each month. This takes time and a change in attitude to accomplish. Many people have acquired debts they can’t pay off, which has affected the amount others will pay to have credit. Be realistic about the lifestyle your income affords you.
If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. This will give you important documentation in case of an ownership change or if the creditor tries to back out of the agreement. After you have paid off your debt, send proof of this to the major credit agencies.
If you want a higher credit rating, you will need to bring down the balance on any existing accounts. You could increase your credit score just by paying down some balances. The FICO system makes a note to your credit report every time your account balance reaches a new 20% increment of your total available credit.
Find a legitimate credit improvement agency to work with. There are many scams that happen in the industry of credit repair. Lots of people get taken in by scammers. Always read reviews online first to find a good agency.
If you are having a lot of trouble with your credit, consider locking up your credit cards for a while. Use cash when you need to buy something. If a credit card is used for a purchase, pay the entire balance when the bill arrives.
One of the most stressful things about poor credit is dealing with debt collection agencies. Cease and desist instructions can be used to ward off debt collectors to a point, but only really to prevent harassment. Sending the letter does not mean you no longer have to pay the bill, it only stops the collection agency from calling.
Don’t fall prey to law offices that promise you instant credit fixes. Because so many people these days suffer from credit problems, attorneys and scam artists have come up with ways to charge a high price for repair schemes that can be illegal and useless. Prior to contacting any lawyer for help fixing your credit, investigate him or her thoroughly.
Part of having bad credit is having lots of debts that you are not able to pay. Spread your payments to all of your different creditors. Even if all you’re making is minimum payments, this will keep you out of collections.
Don’t put off fixing your credit score. There are many ways to improve your credit standing and these are just a few. Put the ideas in this article into action to improve your credit before it starts hurting you.