You may have been able to prevent debts if you had realized who you currently owe money to and just how much you owe. Now it is time to figure out how to resolve the problems and create a better future. The following advice can greatly help you rebuild your credit rating.
Credit Card
If your credit history has put you in the position where you are not able to obtain a regular credit card, you should try to get a secured credit card to begin rebuilding your credit. These accounts are much easier to get as you will have to fund the new account ahead of time with a deposit to cover any purchases. By using a new card responsibly, your credit rating will start to increase.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. 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.
Credit Score
A great credit score should allow you to get a mortgage on the house of your dreams. Fulfilling your mortgage obligation in a timely fashion does a great deal of good for your credit rating. When you are a home owner you will be financially stable based on what you own. Having a good credit score is a key factor if you ever need to take out a loan.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. 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.
Consumers should carefully research credit counseling agencies before choosing one with which to work. Some counselors truly want to help you, while others are untrustworthy and have other motives. Some companies you may find are outright scams. Smart consumers make sure that a credit counselor is legit before starting to exchange any money or sensitive information.
Before you sign any debt settlement, research what effects it will have on your credit score. Some agreements cause less damage to your credit score than others, and each should be considered prior to making an arrangement with a creditor. Remember creditors want their money. They really don’t care about your credit scores. That is up to you to protect.
One way to increase your credit score is to become a member at a credit union. Credit unions may be able to offer more credit options or better rates than a larger bank, based on an understanding of the local area rather than the national situation.
If you notice credit reporting errors, always file a dispute. Write a dispute letter to any agencies with recorded errors, and include supporting documents. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency.
Credit Card
To rebuild bad credit, it can be a good idea to get rid of your extra credit cards. You should only have one. Transfer credit card balances to one card for loan consolidation. It will be easier for you to make payments on a single credit card account, as opposed to several.
Carefully check all charges on your monthly credit card statement for errors. 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.
One of your main tasks in credit improvement is paying off your cards as fast as you can. Pay down credit cards that have the highest amount owed, or the highest interest rates. This will show responsibility to creditors.
Credit Score
Make sure that the credit repair agency you choose to work with is reputable. There are lots of disreputable credit score improvement agencies out there. Many people fall victim to these scams every day. If you do some online research, you can find out what people really think about the various credit score repair agencies. This will help tremendously in choosing a safe and effective company.
It is obviously somewhat difficult to let derogatory marks stand undefended, but the evidence suggests most lenders don’t use those statements in determining creditworthiness. Inclusion of the defending statement could actually have the opposite effect as it brings more attention to the fact that you have a negative mark on your report.
It is easy to get out of debt if you are patient and have common sense. You can easily achieve your goal by following this helpful information.
