Knowing how much was owed, as well as to whom, could have helped you avoid the downgrading of your credit score. But now it is time to go into damage control mode and repair your credit. The following advice can help you easily repair your negative credit.
You can receive a better interest rate if you have excellent credit. This can help lower your monthly payments, and help you pay them off quicker. Receiving competitive credit rates and good offers are important in having credit that you can pay off easily, and that will get you a great credit score.
Installment Account
To improve your credit rating, set up an installment account. An installment account requires that you make a minimum payment each month. It is imperative that you only take an installment account that is affordable. If you use one of these types of accounts, your score will quickly improve.
If you want to avoid paying a lot, you can pay off debts that have a huge interest rate. In many situations, exorbitant fees and penalties can be challenged. Although, in reality, you did agree in advance to pay any interest charges incurred. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.
One of the first steps of improving your credit score is ensuring that your bills are always paid. You should pay your bills in full each month. Do not let them fall behind again and get yourself in trouble. Your credit rating will quickly rise as you settle up your overdue bills.
An important tip to consider when working to repair your credit is to work closely with your credit card companies. This prevents you from sinking further into debt or further damaging your credit score. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Credit Unions
Try joining a credit union to begin a credit score. Credit unions typically offer a wider variety of credit options at better interest rates than a traditional bank. Credit unions are usually non-profit, which means better deals for you.
Go over your monthly credit card statements to check for mistakes. If there are late fees, you have to make sure that you take care of them immediately with the company so that they don’t send that information to the credit bureaus.
If you are able to successfully negotiate a payment schedule for a debt, it is important to request a copy of the agreement 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. Once you finish making all your payments, be sure to send that information to the credit agencies in writing.
Do not file for bankruptcy. Bankruptcies appear on credit reports for ten years. Though the idea of ridding yourself of debt can sound appealing, the long term consequences just aren’t worth it. Once bankruptcy has been filed, it could permanently halt your chances of ever obtaining credit again in the future.
Take the time to carefully go over your monthly credit card statement. Look for any changes that have happened, and make sure they are correct. You do not want to end up paying for a purchase that you did not make. You must be accountable for each item on your statement.
For a better credit rating, lower the balances on your revolving accounts. Lowering your balances is one way to get a better credit score. The Fair Isaac Corporation, FICO system tracks how much of your available credit you are using in 20 percent increments.
Collection Agencies
One of the most nerve-racking aspects of being in debt, and having bad credit, is dealing with collection agencies. A consumer has the legal option of using cease and desist letters to dissuade collection agencies, but it is vital to keep in mind that C&D letters only stop harassment. While such letters stop collection agencies from calling, the consumer is still obligated to pay the debts being disputed.
In order to rebuild your credit, take baby steps to start improving your score. Prepaid credit cards help you re-establish credit without the risk of falling into an even deeper hole due to delinquent payments. A potential lender will see this as a responsible move on your part, showing that you are credit worthy.
If you are having problems working out a budget, or adhering to it, contact a credit counseling service and seek help as soon as possible. Agents at these organizations can negotiate with creditors to set up payment plans for your debt, and they will teach you how to dig out and stay out of debt over time. Working with a credit counselor can help you learn to budget your money.
As this article has spelled out, fixing your credit is not rocket science, and it may be easier to do than you think. This information puts the lie to that notion, so start repairing your credit today.
This is a limited-time offer. We are not able to guarantee availability if you wait!
