Credit Repair Simply Put
Has your bad credit been giving you problems? In this economy, many people find their credit score plummeting. Thankfully, bad credit isn’t forever. Use these tips to learn how to repair your credit once and for all.
The first step in repairing your credit is figuring out a plan that works for you, and sticking with it. Making changes to become a wise spender means you have to make a budget and rules, then follow them. Only purchase something if you cannot live without it. If you are buying something because you want it, and don’t need it, put it back on the shelf.
Credit Score
A secured credit card might be a good option for the person with a poor credit score. These types of credit cards often require a good faith deposit to open a new account. If you get a new card and use it responsibly, it will help to improve your credit score.
If your credit card is carrying more than half of its credit limit, your first priority should be paying it down until it is below 50%. Credit card balances are among the factors taken into account when determining your credit score. Maintaining balances over 50% will lower your rating. You can attain lower your balances by using balance transfers to move debt from accounts with higher balances to those with lower balances, or by simply paying off some of your higher balances.
Good credit scores allow you to take out loans, buy a house, and make other large purchases. Paying down your mortgage improves your score as well. Credit rating companies will judge you a reliable risk when you have verifiable assets such as a home. This will be useful in case you need to borrow money.
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. The incredibly high interest rates can get challenged and reduced in some situations. You did sign a contract and agree to pay interest. If you’re going to try taking your creditors to court, make sure you can prove the interest rates they charged were excessively high.
Credit Report
No credit restoration company can remove factual information, no matter how damaging, from your credit report. Negative credit information remains on your record for up to seven years. You should know that mistakes and anything incorrect can be removed from your credit report.
When you are trying to clear up your credit contact your credit companies. This will help you stabilize your situation and start working towards a better financial situation. Contact your credit card company and request to change your scheduled due date or interest rate.
You can contact your creditors and request a lower limit. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
Before you agree to enter a debt settlement, learn about what happens to your credit as a result of it. Certain methods of settling your debts have less detrimental effects on your credit history. Some of these creditors are only concerned about getting their money, and not how it will affect your credit.
Anything on your credit report that you feel is inaccurate should be disputed. Contact the credit agency in writing, with documentation to support the errors that you are disputing. Make sure when you send the dispute package that you request proof by signature that it was received.
Close all your credit cards except for one as a means of repairing your credit. You may be able to transfer balances to your remaining account. Doing this will allow you to focus on paying off one large credit card bill, instead of several smaller ones.
Check over your credit bill each month to make sure there are no errors. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.
Credit Score
You can use the following advice to improve your credit score. Using this advice, you can prevent your credit score from falling further, and you can begin to improve it.