Knowing how much was owed, as well as to whom, could have helped you avoid the downgrading of your credit score. There is no better time than now to work on repairing past mistakes that can be adversely affecting your credit rating. The following advice can help you easily repair your negative credit.
You may be able to reduce interest rates by maintaining a favorable credit rating. Lower interest rates make it much easier and quicker to pay off balances. Obtaining lower interest rates will make it easier for you to manage your credit, which in turn will improve your credit rating.
Installment Account
If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. Open an installment account that you can pay for and make sure to keep an affordable monthly minimum on it. Paying on time and maintaining a balance will help improve your credit score.
If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates. Creditors are skirting a fine line of law when they try to charge you exorbitant interest rates. It is important to take into account the fact that you did sign a contract and agreed to pay off the attached interest. If you’re going to try taking your creditors to court, make sure you can prove the interest rates they charged were excessively high.
Do not involve yourself in illegal activities. There are plenty of credit scams that purport to erase your existing credit file and create a new one. Needless to say, this is against the law and you are likely to get caught. You could go to jail if you have a lot of legal issues.
Dispute any errors that are on your credit report so they are removed. Write a dispute letter to any agencies with recorded errors, and include supporting documents. Mail your dispute packet with receipt confirmation so you will have proof the agency has received it.
When you get your monthly credit card bill, check it over to see if there are any mistakes. You don’t want them reporting these to the credit reporting companies, so you’ll need to contact them immediately if there are.
Many times you and your creditor can work together to come up with a prepayment plan. If so, be sure you get a written agreement stating the terms. This is the only way that you have of protecting yourself. Once you finish making all your payments, be sure to send that information to the credit agencies in writing.
Bankruptcy should only be viewed as a last resort option. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. It may seem like the right things to do, but your future will be affected. You may never get a line of credit for any purchases you might need to make if you go ahead, give up on repairing your credit and file for bankruptcy.
This helps you retain a proper credit status. Every late credit card payment can damage your credit score.
Our initial inclination is to defend ourselves, but in truth, lenders will not even glance at your defending statement. In fact, it could actually make matters worse by bringing to their notice the negative aspects of your report.
Collection Agencies
Collection agencies are stressful to deal with. Debtors can stop harassment by collection agencies with cease and desist notices, but know that this is all they do. This doesn’t let the customer off the hook for the debt, it merely stops the threatening calls.
Avoid using a law office that claims they can fix your credit. With so many people struggling, scammers are taking advantage of their desperation by offering them fake or fraudulent credit services. Before trying to get credit assistance from any lawyer, make sure to do research on them.
Determine a way that you can settle all overdue accounts using affordable time payments. These will remain on the credit report, but will be reported as paid. This is better than having past due debt.
Threats are illegal. If a collection agency is treating you roughly, you could sue them. Even if you are in debt, you still have rights.
If you are having a difficult time creating or sticking to a budget, get in touch with a responsible credit counseling organization. These companies will work out a repayment plan with your creditors, and help you to take control of your finances. It will also teach you about how to use finances in general, as well as how to be responsible with past obligations.
As this article has spelled out, fixing your credit is not rocket science, and it may be easier to do than you think. Put these simple steps to use to repair your credit situation.