Has your credit situation gotten to the point where it prevents you from sleeping at night? The following advice will help in the path to getting your credit back on track.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. 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.
Credit Score
You can keep your interest rates lower by working to keep your credit score as high as possible. Lower interest rates make paying bills easier, and prevents you from incurring debt. Obtaining the best possible interest rate saves you money, and helps you maintain your credit score.
An installment account is a great way to increase your credit score. With an installment account there is a monthly minimum you need to keep, so only open an affordable account. You can quickly improve your score by successfully managing these accounts.
You can dispute inflated interest rates if you are being charged more than you should be. In many situations, exorbitant fees and penalties can be challenged. Although, in reality, you did agree in advance to pay any interest charges incurred. The only way you are legally able to sue the creditors is if you are able to prove that your interest rates are much too high.
If someone promises you to improve your score by changing your factual history, this is a scam. Unfortunately, this negative information stays on your credit record for at least seven years. Incorrect information may be erased though.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. Your bills must be paid completely and on time. You will notice how quickly your credit score increases when you start paying off those overdue bills.
Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. This will keep you from increasing the amount of debt that you have. You can even ask for help, such as pushing back the due date of your monthly payments or reducing the interest rate.
Do not get mixed up in things that may lead you to imprisonment. There are plenty of credit scams that purport to erase your existing credit file and create a new one. This is illegal and you will most certainly get caught. Legal ramifications can cost a lot, and you may go to jail.
You can contact your creditors and request a lower limit. Not only will this prevent you from owing more, but it will be reflected in your credit score because it shows that you are responsible with your credit.
Credit Score
Before you agree on an agreement for settling your debt settlement, you should determine what affect this will have on your credit score. Certain methods of settling your debts have less detrimental effects on your credit history. Most of the time they want their money and don’t care about your credit score.
One way to increase your credit score is to become a member at a credit union. Credit unions sometimes have better rates and more options for your credit rather than a large bank. You can base this on how well the economy is in your area instead of the national situation.
Dispute any errors that you find on any of your credit reports. You should contact the credit bureaus both online and by certified letter; be sure to include proof of your claims. Sending your letter by certified mail provides you with proof that the letter was received.
As this article demonstrates, you no longer have to be plagued by nightmares about your credit score. It is possible to take control and repair your credit. Your credit report can be improved by following the common sense advice in the article above.