Are you struggling because you have bad credit? In a tough economy, most people see their credit score go down. Luckily, there are ways to improve it, and you can start right now by having a look at these credit score repair tips.
When attempting to make your credit right once more, it is imperative that you present a solution to all those that you owe money to, and don’t deviate from anything you commit to once it is in place. You need to make a commitment to changing your spending habits. If you don’t need something, don’t buy it. Only buy something if you have to have it and you can afford it.
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. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
Ask credit companies to lower all of your card limits. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
When looking over your credit report, look closely at the negative report that are listed. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
Do not live beyond your means. You will have to change the way you think in order to do this correctly. Easy access to credit makes it simple for many people to buy expensive items that they do not have the money for, and a lot of individuals are dealing with the consequences of those purchases. Be sure to assess your finances and find out the things that you can afford.
Check over your credit bill each month to make sure there are no errors. If you spot any mistakes, contact the credit company right away to keep them from reporting the mistakes.
It is important to get any payment plan that you agreed to with a creditor in writing. Having documentation is important for your records but also protects you in case a creditor changes their mind. If you manage to pay off your debt, make sure you receive proper documentation as proof to send to credit reporting agencies.
Filing for bankruptcy is a bad idea. It can adversely affect your credit for up to 10 years. Bankruptcy not only zeros out your debt, it also zeros out your credit score. Though it may provide some immediate relief, be aware of how it will impact your access to credit in future years.
Take the time to carefully go over your monthly credit card statement. It’s up to you to ensure that the charges on your bill are correct and that you haven’t been double charged, overcharged or charged for something you didn’t buy. You are the person responsible for checking that there are no errors.
Credit Score
To earn a higher credit score, keep revolving account balances low. By lowering your credit card balances, you will be able to improve your credit score. When balances are 20, 40, 60, 80 and 100 percent of the total credit available, the FICO system takes note of it.
Credit cards should be avoided. Cash payments are preferable. If you absolutely need to use a credit card, be prepared to pay off the balance at the end of the month or as soon as possible.
If you need to rebuild your credit, you need to start establishing a history of responsible borrowing. Using a prepaid credit card will help to build your credit score, without the worry of late payments, and bad marks on your credit report. Potential lenders will see this as a positive thing as it will show you are a responsible person.
If you felt bad about your credit score, use these strategies to change that. The helpful hints here can end your credit rating free-fall and even encourage it to start rising.
