Get On The Road To Repairing Your Credit Today

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 credit cards that have balances over 50% of your limit should be paid off until they are less than 50% of your limit. 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.

Think about getting an installment account to save money and improve your credit score. You are required to meet a monthly minimum, so be sure that you can make the payments. A properly managed installment account will work wonders on your credit rating.

Credit Counselors

You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. While many counselors are reputable and exist to offer real help, some do have ulterior motives. Some will try to cheat you. A wise consumer will find out if the credit counselors they deal with are legitimate or not.

Call each of your charge card companies and ask them to lower the limit on them. This will prevent you from spending too much that you do not have. It will also show the credit companies how responsible you are, and if you do need to get more credit in the future, you will have a much easier time.

Credit unions are an option for those who have run out of options. Local credit unions might have different credit products than national banks, because they can focus on local market conditions.

If you find any errors on your credit report, you should dispute them. Gather your support documents, make a list of the errors, and compose a letter to pertinent agencies. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency.

Credit Card

Close all your credit cards except for one as a means of repairing your credit. You can make arrangements to pay the balances, or transfer the balances of your closed credit card accounts to your single remaining credit card. This will let you focus on paying off a single account rather than many small ones.

Check your credit card carefully each month to ensure that there’s no incorrect information. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.

Any time you establish any payment plan with any creditor, make sure you 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. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.

Credit Cards

When you start fixing your credit, pay down balances on the credit cards as soon as you can. Begin by paying down those credit cards that carry the highest interest rates or the highest balances. Your debt will not grow as fast as before, if you get rid of high interest rates first, and your creditors will see you are making efforts.

Doing this will ensure that you keep a solid credit score. Late payments to credit cards are reported to the major credit agencies and can hurt your chances for securing a new loan.

Carefully read all of your credit statements. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. The responsibility lies with you to verify that each charge is accurate.

Now you know how to repair your credit score, so get started on a plan of action. Use this information to help increase your credit rating.