You may be able to prevent forming debt simply by knowing exactly how much you owe and to whom. But now it is time to go into damage control mode and repair your credit. Follow this easy advice to get your credit back on track.
The first thing you should do when trying to improve your credit is develop an effective plan and make a commitment to adhere to it. Make a commitment to making better financial decisions. Pay cash for things, and cut out unnecessary expenses. See if each purchase is necessary and affordable and only purchase something if the answers are “yes”.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. Negative entries on your record stick around for a term of seven years at a minimum, even if you take care of the debts involved. However, information that is not correct can be removed.
When you are trying to fix your credit record, call your creditors and make payment arrangements that will benefit both of you. This prevents you from sinking further into debt or further damaging your credit score. One way to tackle this problem is to call them and ask if you can have the due date or monthly charge amount changed.
Make sure you research a credit counselor before you visit them. Some counselors truly want to help you, while others are untrustworthy and have other motives. Some companies you may find are outright scams. You should research any counseling service you are considering prior to initiating communications with them.
Do not do anything that will make you end up in jail. There are less than honest entities that will show you how to make a brand new credit file. Do things like this can get you into big trouble with the law. The legal costs can cripple you, and there is a very good chance you will be sent to jail.
Read your negative reports carefully when attempting to rebuild your credit. Even if a charge held against you is legitimate, any problems with its details, like the date or the amount owed, could make the entire entry invalid and eligible for removal.
Sign up with a credit union if you need to get a new credit line and are having a hard time. Credit unions focus more on the local situation instead of the national one, and may provide more options or rates that are more favorable than those of a larger bank.
Credit Card
Take the time to ensure each month’s credit card bill is correct. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.
If a creditor agrees to give you a payment plan, get that payment plan in writing. This will protect you should the company change its policies. You also want it in writing if it gets paid off so you can go ahead and send it to credit reporting agencies.
Interest Rates
When you start fixing your credit, pay down balances on the credit cards as soon as you can. You should first work on paying down the credit cards with the highest balance or interest rates. Your debt will not grow as fast as before, if you get rid of high interest rates first, and your creditors will see you are making efforts.
If you are late with your payment, your credit status will suffer. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
Credit Score
If you want a higher credit rating, you will need to bring down the balance on any existing accounts. Your credit score can be raised if you lower your balances. Your FICO credit score notes what your balances are on your revolving accounts based on the credit you have available.
Try to use credit cards only for purchases you can afford to pay off. Pay for everything you buy with cash instead. If you do use a credit card, pay the full balance each month.
When you need to repair your credit score, be wary of lawyers and law offices that advertise instant credit fixes. Predatory lawyers have begun to prey on people with credit problems; they charge outrageous fees to repair credit. Before contacting a lawyer for assistance, do some investigating.
You should have noticed that the preceding tips have a common theme–they are mostly based on common sense. Following this information can help you reach your debt goals.
This is a limited-time offer. We are not able to guarantee availability if you wait!
