If your credit report contains errors, it will lower your score, making it hard to obtain new credit. Taking the time to fix your own credit is the way to go. Check out the following tips on how you fix your credit on your own.
Secured credit cards are an effective way for you to start rebuilding your credit. Most people are able to get this type of card, but you will have to load it up with a prepaid amount of money, as a guarantee that you can pay any charges that you make. If you utilize a credit card responsibly, it can aid in the repair of your credit rating.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. Your credit score can be negatively impacted if you are carrying a large balance compared to the available credit you have. While you are paying off these cards, reduce the balance to a small percentage of your available limit.
Working closely with the credit card companies can ensure proper credit restoration. Maintaining contact shows your good faith and can help you minimize further debt. Call them and see if you can change the payment terms. They may be willing to change the actual payment or move the due date.
Before you agree to settle your debt, you need to know how your credit will stand afterwards. Some agreements won’t hurt you as much as others. This is why you should research all of the available ones for you before signing an agreement. Most of the time they want their money and don’t care about your credit score.
Dispute any errors that are on your credit report so they are removed. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Make sure that you ask for a return receipt so that you know your letter makes it to its intended destination.
Credit Card
The first step in credit score improvement is to close all but one of your credit accounts as soon as possible. You can transfer all of your balances to one credit card, ensuring you choose the one with the lowest interest rate. Doing this will allow you to focus on paying off one large credit card bill, instead of several smaller ones.
It is crucial that you review credit card bills on a monthly basis to check for errors. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.
Be certain to get any credit repayment plan in writing. This is for your protection. It allows you to have valid documentation of the terms in the event that a creditor reneges on its offer or changes owners. You also want it in writing if it gets paid off so you can go ahead and send it to credit reporting agencies.
Pay the balances on all credit cards as soon as you can to start the credit improvement process. Start by paying the cards or accounts with the highest interest rates. Beginning to pay your credit card balances off will show creditors that you are making a valiant effort and are credit worthy.
Credit Score
Lowering the balances on any currently revolving accounts will increase your credit score. Your credit score can be raised just by reducing your balances. The FICO system will make a note when the balances are at 20, 40, 60, 80 and 100 percent of the total credit available.
If you go with a repair company to improve your credit score, be sure it is legitimate. Like any industry making claims to help others with their finances, scoundrels and incompetents are usually only discovered after you have lost money, so do your research up front. Slimy operators are quite common, so beware of credit score improvement scams. If you read enough reviews, you can find out which ones are good and which are bad.
This article has down that there are many things you can do to improve your credit standing. Using the tips in this article will help boost your credit score. Monitor your credit score and watch these self-help tips produce measurable results.
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