Having bad credit can sometimes cause you to feel like you are a victim of circumstances. Your bad credit score may remind you of a bad point in your life. Fortunately, there are some things you can take action on right now to raise your credit score, so read on and get ready to regain control of your credit.
If you are unable to get a new card because of your bad credit, try to apply for secured cards. These are extremely easy to qualify for. A secured credit card looks just like a regular card, and works like a regular card, but you have to have the necessary money in an account to guarantee payment. If you use it correctly, a new card can help you fix your credit.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. If you owe more than half of your credit limit on any credit card, this will have a negative impact on your rating. Plan to pay down that card as soon as possible, or see about transferring some of that debt.
When beginning your credit score improvement journey, remain wary of companies pledging to get negative credit report entries deleted, especially if those entries are accurate. This information can stay on your record for about seven years. However, information that is not correct can be removed.
Some sound advice to follow, is to be sure to take the time to contact your credit card company and work with them. If you do this you will not go into debt more and make your situation worse than it was. You can even ask for help, such as pushing back the due date of your monthly payments or reducing the interest rate.
Credit Score
Don’t sign a debt settlement contract until you know what impact it is going to have on your credit score. Some methods of credit settlement can be a blow to your credit score, so it’s important to check into your options and find one that won’t hurt you in the long term. Remember creditors want their money. They really don’t care about your credit scores. That is up to you to protect.
When you get your monthly credit card bill, check it over to see if there are any mistakes. if you find any, then you need to get in touch with the company right away so this does not become a blemish on your credit record.
Try not to file for bankruptcy. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. Bankruptcy not only zeros out your debt, it also zeros out your credit score. It could be near impossible to receive a credit card or loan if you have filed for bankruptcy.
Credit Report
Paying your credit cards on time keeps you in good standing on your credit report. Late payments affect your credit report. Also late payments might prevent you from obtaining a loan should you need it in the future.
Take the time to carefully go over all your credit card statements. Make sure the charges on your credit cards are accurate. Take the reigns, and go over your monthly credit card statements. No one else will do it, it is your responsibility.
For a better credit rating, lower the balances on your revolving accounts. Having a lower balance will boost your credit score. When your available credit passes 20, 40, 60, 80 or 100 percent, it gets noticed by the FICO system.
You may want to argue against the reports, but potential lenders will not take your statements into consideration. The basic reason for bad marks on credit is simple. You did not pay something you were supposed to pay. Lenders are often discouraged by people that make excuses for bad credit.
Avoid using your credit cards. Instead use cash for all your purchases. If a credit card is used for a purchase, pay the entire balance when the bill arrives.
Do not trust anyone who promises you miracle results. Due to the huge amount of people with credit problems, lawyers have emerged and offer to repair credit for a huge fee, and most of the “repair” is illegal or useless. Before trying to get credit assistance from any lawyer, make sure to do research on them.
In order to rebuild your credit, take baby steps to start improving your score. Prepaid credit cards offer a risk and worry free opportunity to slowly increase your credit score. Potential lenders will see this as a positive thing as it will show you are a responsible person.
When your credit is in disrepair, it is quite easy to throw your hands up and think that things will never improve. The credit restoration tips in this article can get you in a new frame of mind, and make the first steps to improve your credit.
