You need not suffer the effects of bad credit, no matter how you wound up with credit problems. Whether you have been personally damaged by economic conditions, victimized by dishonest lenders or even were simply too carefree in your spending, you deserve better credit. Luckily, there are some things you can do to make things better. Here are just a few of the ways you can do that.
If you can’t get a normal card due to low credit score, look into a secured card. This card is very easy to get, because you put money into an account ahead of time and then spend from that, so the bank doesn’t have to worry about not getting their money. Using this new credit card in a responsible manner will help to build back up your good credit rating.
Pay down the balance on any credit card that is 50% or more of the credit limit. When your debt is over 50%, credit ratings usually go down. With that said, try to spread out the debt that you have or try paying it off.
Good credit scores allow you to take out loans, buy a house, and make other large purchases. You can improve your credit by paying your mortgage on time. As a homeowner, you will have a major asset that can have positive effects on your credit profile. That way, you will be in a better position to secure loans in the future.
Installment Account
If you want to boost your credit score and earn a decent living, open an installment account. It is necessary to at least pay the minimum, so insure the account is something that you can pay. Keeping an installment account will help your credit score.
Any company or credit counselor that claims they can erase all negative reports from your credit history should be viewed with some skepticism. These bad marks stay on your record for seven years or more. However, information that is not correct can be removed.
When starting to repair your credit, pay your bill on time from now on. You can’t just pay whatever you want whenever you want. You need to pay your entire balance when it’s due. This will improve your credit score. The score rises as soon as you start making some headway on your overdue bills.
Stay in touch with credit card companies if you wish to repair your score. Maintaining contact shows your good faith and can help you minimize further debt. Do not be afraid to call your credit card company and ask if you can make changes to your due date or your minimum payment amounts.
Credit Counselor
If you are looking into a credit counselor, be sure to find out information about them before you choose to use them. There are some legit counselors, and there are some that have ulterior motives. Some are just people trying to scam you. Before you conduct any business with a credit counselor, check into their legitimacy.
Find out how the process will affect your credit rating before you agree to any debt settlement agreements. Some ways of dealing with debt repayment are better for your credit score than others, so make sure you are achieving the best outcome for you before you sign anything. The credit companies are looking at their own bottom line and are not concerned with your credit score.
Credit Agency
If you find a mistake on your credit report, be sure to dispute it! Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.
In order to start repairing your credit, you should close all but one of your credit card accounts. Transfer your balances to this one card, with the lowest interest, if this is possible. By doing this, you can work towards completely paying off one credit card with a large debt, rather than working piecemeal with many smaller debts.
If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. Having documentation is important for your records but also protects you in case a creditor changes their mind. Once you make the final payment, get a statement that verifies that the debt has been satisfied and send it to the various credit reporting agencies.
Paying your credit cards on time keeps you in good standing on your credit report. Every late credit card payment can damage your credit score.
Credit Score
Lowering the balances on revolving accounts can help you to get a better credit score. Just lowering your balances can raise your credit score. When balances reach anywhere from 20-100% of your available credit balances (in 20% intervals), the FICO system will make a note.
Look for a credit score repair company that has good reviews online and is legitimate. There are plenty of credit restoration agencies that don’t follow through with their promises. It is sad to see how many people have been taken advantage of by credit score repair scams. If you read enough reviews, you can find out which ones are good and which are bad.
Part of having bad credit is having lots of debts that you are not able to pay. Take the money you have set aside for debt payments, and divide it up into portions for each debtor. Paying each creditor something, even less than the minimum payment due, can usually appease your creditors enough that they will not turn your accounts over to collection agencies.
Although it can seem daunting, you can get your credit on the mend by learning about it and taking the proper steps. Use the information in this article to boost your credit score.