If you have errors on your credit report, it can lower your credit score and make it hard for you to get new credit. Set your credit report straight by doing your own credit restoration program. These tips will help you fix your credit.
If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. Your credit score can diminish with balances over 50%, so spread out the debt or pay off the credit cards.
Interest Rates
If you don’t want to pay too much at a time, you can avoid paying higher interest rates than you started with. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. You did however sign a contract that agrees you will pay off all interests as well as the debt. If you want to sue creditors, you need to state your claim that the interest rates are too high.
Any company or credit counselor that claims they can erase all negative reports from your credit history should be viewed with some skepticism. All information remains on your credit report for a period of seven years or more. Be aware, however, that incorrect information can indeed be erased from your record.
Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. You should contact the company and request a lower interest rate or a due date change if necessary. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Before consulting a counselor for credit improvement, do your research. There are a lot of unscrupulous agencies scattered in among the few legitimate credit counselors that are really there to help you. Some are just people trying to scam you. You should always find out if a credit counselor is the real thing.
Credit Score
Find out how the process will affect your credit rating before you agree to any debt settlement agreements. Do some heavy researching before starting an agreement with any creditor; there are other options that may not damage your credit score as heavily. They do not worry about how your credit score looks; they want to get money.
Check your credit card carefully each month to ensure that there’s no incorrect information. 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.
When you receive your credit card statement, go over it carefully. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. You are responsible for the accuracy of information on your credit card statments.
Look for a credit score repair company that has good reviews online and is legitimate. Too many of these services will use your desperation to make money. Slimy operators are quite common, so beware of credit improvement scams. One way to separate the wheat from the chaff is to check user reviews online.
Put your credit cards on lock down and don’t use them at all, if possible. Try to use cash when purchasing. If you ever use a credit card, be sure to pay it all in full.
Collection Agencies
Debt collection agencies are the most difficult part in having bad credit. A consumer had the option of making use of cease and desist statements to persuade collection agencies, but remember that C&D statements only prevent them from harassing you. These letters may prevent collection agencies from making phone calls, but the consumer remains responsible for paying the debt.
When repairing your score, be cautious of law offices and lawyers that promise fixes for credit. Since many people have credit issues every day, there are now scam lawyers that promise to repair them. They charge large fees, and most of the time the services they provide are illegal and have no worth. Investigate any lawyer thoroughly before contacting them for credit assistance.
When you are involved in a credit crunch, you have many debts but not enough money to pay them. Spread your payments to all of your different creditors. Even making the monthly minimum payment will keep the creditors at bay, and stop them from hiring a collection agency.
If you need to rebuild your credit, you need to start establishing a history of responsible borrowing. Prepaid credit cards are great for this, since you can get improved with a bad credit score, and there’s no way to rack up debt and late fees. By doing this you will be proving to potential lenders you are credit worthy and capable of paying money when you are required.
Credit Score
As you can see, you have many options when it comes to repairing your credit. Our helpful tips provide several ways for you to acquire a healthy credit score. Monitor your credit score and watch these self-help tips produce measurable results.
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