There are many reasons why you may have a poor credit history. Credit cards could have been your primary means of support while you were gaining an education, a passion for shopping may have gotten the best of you or the decline in the economy might have left you jobless for a time. You can turn things positive on your credit report by starting with these steps.
If your credit is such that you cannot get a new card to help repair it, apply for a secured one. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. If you use it correctly, a new card can help you fix your credit.
You can get better interest rates on credit cards and loans when you have a good credit score. Monthly payments are easier this way, and you can pay off your unpaid debt. Asking for a better deal from your debtors can help you get out of debt and back to achieving a better credit score.
You can get a house mortgaged at the snap of a finger if you have a high credit score. If you pay your mortgage as agreed, your credit score will rocket into the stratosphere. 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.
An installment account is a great way to increase your credit score. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. By successfully handling the installment account, you will help to improve your credit rating.
It’s vital that you actually begin paying the bills that you have if you want to improve your credit. Your bills must be paid completely and on time. Once you have started to pay towards your past-due accounts, you credit score will gradually improve.
Make sure you research a credit counselor before you visit them. Although some credit counselors are truthful and legitimately helpful, other credit counselors are not honest and upfront with their motives. Some credit services are nothing more than fly-by-night scams. A wise consumer will find out if the credit counselors they deal with are legitimate or not.
Credit Card Companies
Give the credit card companies a call and find out if they will lower your credit limit. This will help you accomplish three things: 1. You will avoid being overextended. 2. Credit card companies will begin to view you as responsible. 3. It will be easier for you to get credit as time passes.
Avoid spending more money than you make. You will have to change your thought patterns in order to get your debt under control. While you may see your peers racking up credit debt, be sure to not fall into the same trap. You should look at what you can afford to spend, before using credit for purchases.
Though it is hard to make this step, consider paring down the number of credit lines to just one; this will sometimes improve your credit score. You should plan on how you will pay the remaining open balances, or how to consolidate them into one account. This way you can work on paying one credit card balance off, instead of a bunch of smaller ones.
Go through all the 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. It’s up to you to make sure that every item on your bill is correct and dispute those that are not.
Try and pay down any revolving account balances in order to boost your credit score. Maintaining smaller balances can improve your credit rating. FICO will base your score on what percent of your available balance is in use, so keep that in mind.
At first, it may seem impossible to repair your damaged credit. However, with some effort and the right advice, you can start to improve your credit rating and eventually regain a credit score that will instill faith in any lender. Apply the knowledge from this article in order to assist you in repairing your credit score.