Fix Your Bad Credit With These Tips
If you have errors on your credit report, it can lower your credit score and make it hard for you to get new credit. There are a few ways to fix inaccuracies and/or blemishes on your credit report. Check out this article for some expert credit restoration advice.
Keep your credit card balances below 50 percent of your 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.
Maintaining a respectable credit score will enable you to obtain lower interest rates. Lower interest rates make paying bills easier, and prevents you from incurring debt. Getting a good offer and competitive credit rates is the key to credit that can easily be paid off and give you a good credit score.
If your debt includes large amounts for interest charges contact the debt collector and see whether you can pay the original debt and avoid some of the additional interest charges. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. You did however sign a contract that agrees you will pay off all interests as well as the debt. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. Negative info stays on your history for seven years! It is true, however, that you can remove inaccurate information from your report, but you do not need the assistance of a consultant to do so.
Begin paying your bills to repair your credit. More importantly, you need to start paying your bills in full and on time. This will improve your credit score. The score rises as soon as you start making some headway on your overdue bills.
Work with the companies to whom you owe money to get your debt back under control. Avoid collection to improve your credit score. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
If you are trying to repair your credit, check all of your negative reports very carefully. If you notice a mistake on your report, you could get some items crossed off. Even if the item itself is right, an error in the date or amount gives you the right to contest it.
Joining a credit union can give you opportunities to increase your credit score. These credit unions can probably give you better credit options in the long run.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. 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.
If your credit is poor, take the first step to repairing it by closing out the majority of your cards, leaving yourself just one to use. Make the minimum payment each month on your other accounts, but make the largest payment possible to the one account you are focusing on. It is much easier to manage one large monthly payment than it is to keep track of multiple smaller ones.
Be certain to get any credit repayment plan in writing. This will provide proof of your agreement in case any problems ever arise. 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.
If at all possible, avoid filing bankruptcy. This will have damaging consequences to your credit score for ten years. Though the idea of ridding yourself of debt can sound appealing, the long term consequences just aren’t worth it. By filing for bankruptcy, you might have a lot of trouble getting a credit card or qualifying for a loan in the future.
By now, you should be encouraged to know that there is much you can do to help repair your bad credit. Use the helpful tips in this article to help you raise your credit score. A better credit score is within your reach.