There are a lot of ways to damage your credit score, from falling for a credit card scam to just being unlucky with the recent economy. There are some things you can do to turn your credit around.
Maintaining a respectable credit score will enable you to obtain lower interest rates. This allows you to eliminate debt by making monthly payments more manageable. Try to get the best offer and credit rates so you can increase your credit score.
Installment Account
Getting an installment account can help you earn money and provide a boost to your credit. With an installment account there is a monthly minimum you need to keep, so only open an affordable account. If you use one of these types of accounts, your score will quickly improve.
Working closely with the credit card companies can ensure proper credit restoration. Talking to them will help keep you from drowning further in debt and making your credit worse. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Before you choose a credit counseling agency, find out more about them. You will find some counselors that truly want to help you fix your credit situation, while others may have different motives. Some are not legitimate. Before you conduct any business with a credit counselor, check into their legitimacy.
Do not try something that you do not know is legal or illegal. There are plenty of credit scams that purport to erase your existing credit file and create a new one. Do things like this can get you into big trouble with the law. The legal proceedings will be costly, and you may even be sent to jail.
Make sure you review all of the negative marks against you on your credit report. Errors are not infrequent in credit reports. If you can prove the credit bureau is in the wrong, they should correct the reported error or remove it entirely.
Credit Unions
Credit unions are an option for those who have run out of options. Credit unions have opportunities that are better than other places and are usually local.
Dispute every error you identify on your credit report. Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. When you mail your dispute package, be sure to make arrangements for confirmation of receipt. In this way, you will have documentation that your information has been received.
One excellent way to get your credit score back up is to close all your credit cards except for one. Then, try to arrange payments or transfer your balances to the one account you left open. It will be easier for you to make payments on a single credit card account, as opposed to several.
If you work out a payment plan with a creditor, you should make sure to get the plan in writing. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. When you pay it off, send a written copy of proof of payment to all three credit reporting agencies.
Credit Card
If credit score repair is something you have been considering, the first step would be to pay down your credit card balances. Begin by paying down those credit cards that carry the highest interest rates or the highest balances. This effort will show the credit card companies that you are trying to pay your bills and be responsible.
This helps you retain a proper credit status. Every time you pay late it is put on your credit report and will hurt you if you ever need a loan taken out.
Make sure the credit score repair agency is reputable. There are far too many of these companies that are quite simply fraudulent. Many people fall victim to these scams every day. See if the company in question has a reputation on any of the user review sites before you commence business with them.
Keep your credit cards in your wallet. Try to use cash when purchasing. If a credit card is used for a purchase, pay the entire balance when the bill arrives.
Repairing the credit you damaged might seem overwhelming, but you can fix your credit with effort and the right kind of information. Use what you’ve learned in this article to start fixing your credit and improve your credit score.