With this downward economy, it is no surprise that millions have poor credit scores. Luckily, these tricks and tips can show you how to have a better credit score.
If you are unable to get a new card because of your bad credit, try to apply for secured cards. These types of credit cards often require a good faith deposit to open a new account. A responsibly used new credit card will begin healing your credit score.
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%. When your debt is over 50%, credit ratings usually go down. With that said, try to spread out the debt that you have or try paying it off.
Interest Rates
Getting a reduced interest rate is the easiest way to reduce your overall debt. It is bordering on illegal for credit card companies to charge you skyrocketed interest rates. It is important to take into account the fact that you did sign a contract and agreed to pay off the attached interest. Suing your creditors can be effective in some circumstances in cases where the court considers the interest rates to be excessive.
The first step to repairing your credit is paying what you owe. However, it’s not enough to just pay your bills; you need to make your payments on time and in full. You will notice an improvement in your credit score pretty quickly after paying off some past debts.
You need to work with the companies from whom you have credit cards. This will assure them that you want to handle your debt and keep you from getting even further behind. Don’t be afraid to ask for alterations in interest rates or dates of payment.
Credit Counselors
Make sure you thoroughly research into any credit repair agency or counselor before you do business with them. Although some credit counselors are truthful and legitimately helpful, other credit counselors are not honest and upfront with their motives. Some are simply fraudulent and are out to get your money. You should always find out if a credit counselor is the real thing.
Before you decide to go through with a debt settlement, you should be sure you know how it will affect your credit. Some debt settlements are better than others. Do your homework and find out how your score will be impacted before agreeing to anything. Some debt settlement companies are only after profits and do not communicate the likely consequences of their methods.
Don’t spend more than you make. This might be a tough thing to get your head around. The rise of consumer credit in the past few years has made it far too easy to buy items without being able to pay, and the bills are coming due. Take a hard honest look at your budget, and figure out what you can honestly afford to spend.
Make sure to review your credit card statement monthly to make sure there are no errors. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. Having the plan in writing will protect you if the creditor reneges on the plan or if your debt is transferred to another creditor. 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.
Don’t put off until tomorrow what you can do today, especially now that you are armed with the necessary tools to put a plan into motion. Don’t let poor credit affect your life any longer. Use the tips presented here to repair you score and your overall financial health.
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