Whether you got your credit cards on your college campus, went shopping too many times or suffered from the bad economy, you’ve probably damaged your credit. Fortunately, there are quite a few ways that you can remedy your credit situation.
Planning is the first step to repairing your credit. Making changes to become a wise spender means you have to make a budget and rules, then follow them. Purchase nothing but the essentials. If you are buying something because you want it, and don’t need it, put it back on the shelf.
If your credit is good, it’s easy to get a mortgage on a new home. You will get a better credit score by paying your mortgage payment on time. The more equity you have in your home, the more stability the banks see in you. Having a home also makes you a safer credit risk when you are applying for loans.
No credit restoration company can remove factual information, no matter how damaging, from your credit report. Unfortunately, negative marks will stay on your record for seven years. But, you should remain mindful of the fact that errors can be deleted from your report.
Before you choose a credit counseling agency, find out more about them. Some counselors truly want to help you, while others are untrustworthy and have other motives. Some companies you may find are outright scams. A wise consumer will find out if the credit counselors they deal with are legitimate or not.
Find out how the process will affect your credit rating before you agree to any debt settlement agreements. Some methods are less damaging than others; research them all before making an agreement with your creditor. Some creditors have no concern over how your credit score can be affected by entering into certain agreements. These people just want your money.
If you find any errors on your credit reports, dispute them. 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.
Always get a plan in writing if you are going to do a payment plan that deals with creditors. If there is a change of heart, this paper will protect you. When the debt is eventually paid or settled in full, you should request documentation of this and forward copies to the primary credit reporting companies.
Pay off any balances as soon as you can. Pay down the cards with the largest balances and interest rates first. This builds the positive credit history that creditors like to see.
Making your payments on time shows lenders that you are serious about maintaining good credit. Late payments are added to credit reports and they can damage your chances of getting loans or a home in the future.
You need to read and understand the credit card statements you receive in the mail. It’s up to you to ensure that the charges on your bill are correct and that you haven’t been double charged, overcharged or charged for something you didn’t buy. You bear the responsibility for looking after your own best interests, and you are the only person who will know if your statement is accurate.
Credit Score
To earn a higher credit score, keep revolving account balances low. Lowering your balances is one way to get a better credit score. The FICO system notes when balances are at 100, 80, 60, 40 and 20 percent of your total credit available.
When lenders are looking at your credit, an explanation that goes with the report generally will not even be looked at. The less you can do to attract attention to negative reports, the better.
Do not use your credit cards. Pay for everything with cold, hard cash. Pay off any credit card purchases immediately.
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. Use what you have read here to get back on track with your credit.
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