How To Recover From A Poor Credit History
Has your bad credit score prevented you from getting the things you want in life? There are millions of people who have seen their credit score go down in today’s rough economic climate. Fortunately, it is possible to improve it; start right away by checking out this advice regarding credit restoration.
A lower credit score can get you a lower interest rate. Lower interest rates make paying bills easier, and prevents you from incurring debt. Make sure to use a company that gives you the best rates so your bill isn’t being built up by money you haven’t even spent.
If credit score improvement is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. These things are, generally, on your record for seven years. Items that you can get taken off your record are those that have been reported incorrectly or unfairly.
In order to start repairing your credit, you need to start paying your bills. You can’t just pay whatever you want whenever you want. You need to pay your entire balance when it’s due. Your credit score starts to improve immediately upon paying off some of your past due bills.
Credit Counseling
Before consulting a credit counseling agency, be sure to check out their background and history. You will find some counselors that truly want to help you fix your credit situation, while others may have different motives. Other counselors are nothing more than scam artists. A savvy consumer will always do his or her research on any credit counseling service to ensure that the agency is legitimate.
Contact your creditors and see if you can get them to lower your overall credit limit. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
If you find any errors on your credit report, you should dispute them. Contact the credit agency in writing, with documentation to support the errors that you are disputing. Your letter should be sent with a request for return receipt, so you can have a record that it was received by the reporting agency.
Take a look at credit card bills to make sure that every item is one you have charged. You don’t want them reporting these to the credit reporting companies, so you’ll need to contact them immediately if there are.
Filing for bankruptcy is a bad idea. It is noted on someone’s credit report for 10 years. Although it seems like the wise thing to do at the time, it will bring you negative consequences in the long run. It could be near impossible to receive a credit card or loan if you have filed for bankruptcy.
Credit Card
It is important to read all credit card statements you receive. You want to double check that all the charges are accurate, and that you are not paying for something you did not purchase. Do not trust the credit card companies to have your back, guarantee you do not pay debt that is not yours yourself.
It is difficult to just forget about negative reports, but writing a statement is useless. It can even draw more attention to the bad spots, so don’t do it.
Don’t use credit cards a lot. Pay for things with cash whenever possible. If you absolutely have no other choice but to use a credit card, pay off the balance in full as soon as possible.
Collection Agencies
One of the biggest stressors can be bad dealings with debt collection agencies. Cease and desist instructions can be used to ward off debt collectors to a point, but only really to prevent harassment. These letters stop collection agencies that harassing debtors, but they don’t erase liability for the debt itself.
It can be terrible to deal with having multiple different debts that you are unable to pay. You should spread out the money you do have to spend so that all of your creditors get a share. Even a minimal payment can satisfy your creditors and keep your accounts from landing in collections.
Avoid frustration about a low credit score. The advice from this article can help you turn around your credit situation and come out ahead.