With so many people suffering hardships, such as job loss and higher living expenses, that make it difficult to survive, it comes as no surprise that so many have poor credit scores. The following tips will give you great information on how you can go about improving your credit score.
You may be able to get a secured credit card even if your poor credit has prevented you from getting other credit cards. Anyone can get one, but you must load money onto the card as a type of “collateral”. Using this card responsibly will improve your credit rating over time, and eventually you’ll be able to get a normal credit card again.
Improve your credit score, as well as make some profit, through 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. Your FICO score will rise over time, if you responsibly manage this type of account.
Begin paying your bills to repair your credit. You can’t just pay whatever you want whenever you want. You need to pay your entire balance when it’s due. As soon as you have cleared those old debts, you will see an immediate improvement in your credit score.
You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. Many may have ulterior motives, so make sure you are not being duped. Some credit services are nothing more than fly-by-night scams. Intelligent customers will make sure to determine the legitimacy of a credit counseling agency before acquiring their services.
Ask credit companies to lower all of your card limits. 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.
Close all your credit cards except for one as a means of repairing your credit. Then, try to arrange payments or transfer your balances to the one account you left open. This will let you focus on paying off a single account rather than many small ones.
It is important to get any payment plan that you agreed to with a creditor in writing. Having documentation is important for your records but also protects you in case a creditor changes their mind. Once you finish making all your payments, be sure to send that information to the credit agencies in writing.
Make sure that you pay more than the minimum balance owed on all of your credit cards to improve your credit. First, work on the accounts with the highest interest rates and the highest balances. This will show future creditors that you take your debts seriously.
Pay your bill early or on time each month to ensure that your credit score stays good. Each late payment that you make shows on your personal credit report and can hurt you when the time comes to take out a loan.
There are many credit repair agencies advertised; you must check with places like the Better Business Bureau to make sure that you deal with a reputable one. The industry unfortunately has some agencies that fall short on their credit restoration promises. There are many people who have been the victim of a credit score repair scam. Read all the reviews that you can find and you should be able to make a decision about who you can trust.
Avoid using your credit cards. Purchase with cash. When you find credit card spending unavoidable, pay down your balance immediately.
Collection Agencies
Collection agencies are stressful to deal with. You can use a cease and desist letter to stop any harassment from collection agencies. A letter like this may stop a collection agency from harassing you, but you are still on the hook to pay your debts.
Start using credit again in order to repair damage caused by previous negative activity. Prepaid or secured credit cards can help to rebuild your score without late payments or going over your limit. This approach will indicate to others that you are serious about taking responsibility for your financial future.
You shouldn’t have to wait to get going with your credit improvement. Put this advice to work for you immediately to start cleaning up your credit report before your poor credit rating negatively impacts your life any further.