Having bad credit can enable you to feel as if you’re being persecuted. Hard circumstances in life or simple mistakes, can sometimes cause credit to go awry. Looking at your credit can bring back these bad memories, making moving forward difficult to do. You can do things to improve credit and here are some good ways.
If you can’t get a normal card due to low credit score, look into a secured card. This card will be more than likely be granted to you, however you must fund the account ahead of your purchases as a sort of “insurance” to the bank that your debts will be paid. Using this new credit card in a responsible manner will help to build back up your good credit rating.
Credit Cards
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. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.
You may be able to reduce interest rates by maintaining a favorable credit rating. This allows you to eliminate debt by making monthly payments more manageable. Get a good offer along with good rates, and you’ll have credit that you can pay off easily, and improve your credit score.
Getting a reduced interest rate is the easiest way to reduce your overall debt. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. However, the contract you signed ensured that you agreed to pay off your interest. You can consider suing your creditors if the interest rates are outrageously high.
Some sound advice to follow, is to be sure to take the time to contact your credit card company and work with them. This will assure them that you want to handle your debt and keep you from getting even further behind. You can even ask for help, such as pushing back the due date of your monthly payments or reducing the interest rate.
Credit File
Don’t do anything illegal. There are schemes online that will show you how to establish an additional credit file. Creating a new credit file is very illegal and you can be easily caught. Think of the legal costs and the possibility of doing hard time.
Requesting that your credit card limits be lowered can benefit you. This will prevent you from spending too much that you do not have. It will also show the credit companies how responsible you are, and if you do need to get more credit in the future, you will have a much easier time.
When attempting to improve your credit, you should go over any negative marks with a fine tooth comb. Although a certain credit item may not have any error, finding a mistake corresponding to a date or an amount can have the same item taken out of your report.
If you find a mistake on your credit report, be sure to dispute it! Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.
Credit Card
Examine your credit card charges monthly to ensure they are correct. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
It is important to get any payment plan that you agreed to with a creditor in writing. This is the only way that you have of protecting yourself. When the debt is eventually paid or settled in full, you should request documentation of this and forward copies to the primary credit reporting companies.
Carefully read the small print on your statements. It’s up to you to ensure that the charges on your bill are correct and that you haven’t been double charged, overcharged or charged for something you didn’t buy. You are the only person that is responsible for making sure the statements are error free.
When lenders are looking at your credit, an explanation that goes with the report generally will not even be looked at. Inclusion of the defending statement could actually have the opposite effect as it brings more attention to the fact that you have a negative mark on your report.
Bad credit can really get you down in the dumps. Following these tips to improve your credit score will help you take charge and have a more positive attitude.
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