Do you find that issues with your credit score prevent you from sleeping? The information and advice found here can set you straight and on the road to the credit report you wish you had.
If credit repair is your goal, create a plan and stick with it. You can’t just make up a plan and not change how you spend your money. Stick to the essentials, and avoid frivolous purchases at all costs. Ask yourself whether every purchase is both affordable and necessary, and only buy if the answer to both questions is “yes”.
Credit Card
When your credit is so bad that you can’t get a ‘regular’ credit card, a secured one will help you to repair your credit. You are more likely to be approved for this type of card because, once funded, the banks feels secure that you will pay them back. A new credit card, used responsibly, will help repair your credit rating.
If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
Improve your credit score, as well as make some profit, through an installment account. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. Handling an installment account correctly will help you improve your credit score in a short period of time.
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. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.
Working closely with the credit card companies can ensure proper credit restoration. This will enable you to make sure to keep your credit in good standing and repair any damage that may have been caused. You can do this by speaking with them and asking to change the monthly charges or due date.
If you see errors on your credit reports, dispute them with the credit agency. 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.
Do everything you can to avoid filing bankruptcy. This negative mark will stay on your report for 10 years. Bankruptcy may sound great because your debt goes away but there are consequences. Once bankruptcy has been filed, it could permanently halt your chances of ever obtaining credit again in the future.
Credit Cards
In order to start repairing your credit, you should try to pay down the balances on your credit cards as quickly as possible. No matter what the balances are on your credit cards, pay down the highest interest rate cards first. This will show future creditors that you take your debts seriously.
Doing this will ensure a good credit score. Each time you make your payment late it will go against you.
Try to avoid using credit cards. Purchase with cash. If you do use a credit card, pay the full balance each month.
Collection Agencies
One of the most stressful aspects of handling bad credit is dealing with debt collection agencies. 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. Although these letters make collection agencies cease contacting people, they are still expected to pay their debts.
It is the worst when you have many debts that you are unable to pay. Spread your money among your creditors so that they each get a part of what funds are available. Regardless of whether you are making the minimum payments or a little more, getting some money will keep your creditors at bay and may stop them from calling collection agencies.
Write down a plan that guides you towards paying off your debts. These accounts will still appear on a credit report, but they will be earmarked as paid.
Make sure to record any threats by debt collectors. This is an illegal form of intimidation and should be reported. You need to know what the laws are that protect your rights as a consumer.
When you are struggling to get your credit in order, consider checking out debt consolidation programs to help you get better results from your efforts. To have an easier time budgeting and keeping track of expenses, you should consolidate your debts in one payment. This is a great step to take towards credit repair.
Go over your credit reports from the major agencies, and have any false information wiped from your files. Make a note every time there is contact, including correspondence by email or postal mail. Make sure to keep records of any calls you get. Send dispute letters by certified mail so that you have a paper trail proving you sent it and the credit reporting agency received it.
You can improve your credit by making your payments on time, every month. Even if it’s just the minimum, make sure you send a payment. You can hurt your credit by having only one missed payment.
The quickest way to work on repairing any type of credit is to first pay off any outstanding debt. Letting your debts sit idle or, even worse, continue to grow will hamper any other steps you intend to take to resolve your credit problems.
As you have read, a bad credit report doesn’t have to give you nightmares. You don’t have to be afraid of your credit score; you can improve it. By the time you finish applying these tips, your credit score will be on its way up.
This is a limited-time offer. We are not able to guarantee availability if you wait!
