Blemishes on your credit can feel like personal failures. It could have been created by honest errors or life experiences out of your control, but bad credit can really stifle your lifestyle and act as a constant reminder of times you’d like to forget. You can do things to improve credit and here are some good ways.
If credit score repair is your goal, create a plan and stick with it. Make a commitment to making better financial decisions. Sticking to necessities for a while is crucial. Ask yourself how necessary each purchase is, and how affordable it is too. If you can’t answer “yes” to each of the questions above, you need to reconsider the purchase.
You can get a house mortgaged at the snap of a finger if you have a high credit score. Keeping up with all of your mortgage payments will help pull your credit score even higher. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. Having a home also makes you a safer credit risk when you are applying for loans.
Interest Rates
Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. Remember that you agreed to pay that interest when you signed the contract. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.
When looking to improve your credit, avoid companies claiming that they can remove negative information if the debt is true. It seems unfair, but accurate negative information will stick around 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.
Do not get mixed up in things that may lead you to imprisonment. Scams abound on the internet that show you how to change your credit file. You will be prosecuted, it is against the law. Legal ramifications can cost a lot, and you may go to jail.
Credit Score
Before you agree to any sort of repayment plan to settle your debts, consider how this will affect your credit score. Some agreements won’t hurt you as much as others. This is why you should research all of the available ones for you before signing an agreement. The credit companies are looking at their own bottom line and are not concerned with your credit score.
Read your negative reports carefully when attempting to rebuild your credit. If you find errors in any of the information, you might be able to request the entire negative record be removed from your credit report.
If you are trying to improve your credit score but are having difficulty gaining access to new credit in order to do so, join a credit union. Credit unions sometimes have better rates and more options for your credit rather than a large bank. You can base this on how well the economy is in your area instead of the national situation.
Officially dispute any errors you find on your credit reports. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
When you get your monthly credit card bill, check it over to see if there are any mistakes. If there are late fees you don’t deserve, act as soon as possible to get the matter resolved before it can affect your credit score.
Make sure to fully read every single credit card statement that you get. Make sure that all of your fees and charges are correct and that there are not any items that were not authorized by you. You are the only one that can verify if everything on there is the way it should be.
Collection Agencies
One of the most stressful things about poor credit is dealing with debt collection agencies. You can use a cease and desist letter to stop any harassment from collection agencies. The consumer still has to pay disputed debts even though these letters stop agencies from calling.
Building your credit back up is the number one way to fix a bad credit score. Prepaid credit cards can help you to break bad spending and repayment habits. Potential lenders will be sure to see that you can be relied upon and are worthy of credit.
Each time you get a new credit card can negatively effect your credit score. Resist the urge to apply for credit cards while shopping at your favorite retailer, even if they offer tempting promotions. Opening a new line credit line can immediately decrease your credit score.
Having a poor credit score can make you have negative feelings about your finances. If you follow the tips offered in this article, you can start to feel differently about your credit life.
