When you know what you are already liable to pay, and to whom, you might be able to avoid incurring debt. It is now time to perform crisis management and begin to boost your credit score. The following article includes some easy to follow advice to get you on the road to repairing your credit.
If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
If your credit is top-notch, getting a mortgage is a simple matter. Paying mortgage notes on time will keep your credit scores high. Owning your own home also improves your credit score in the form of having large assets to borrow against. If you have to borrow some money, you will need this.
Opening an installment account can give quite a boost to your credit score. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. Your FICO score will rise over time, if you responsibly manage this type of account.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. These bad marks stay on your record for seven years or more. It is possible to have erroneous information removed from your report, however.
Do not get mixed up in things that may lead you to imprisonment. There are less than honest entities that will show you how to make a brand new credit file. Of course, this highly illegal, and it will cause you even more problems, because it will not go unnoticed. The legal consequences are expensive, and you might be sentenced to jail.
Before you agree to settle your debt, you need to know how your credit will stand afterwards. 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. Debt settlers are more interested in their money than your credit rating.
When you want to rebuild your credit, take a close look at any negative reports that are harming your credit. Any mistakes, such as in the amount owed or the date the agreement was entered, could result in the removal of the entire negative trade line on your credit report.
Shut off all but one credit card if you want to fix your credit. Make the minimum payment each month on your other accounts, but make the largest payment possible to the one account you are focusing on. You will be able to pay one bill instead of a plethora of small ones.
Credit Card
Look through your credit card statement each month and make sure that it is correct. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
This is the first step toward having an A+ credit rating. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
It is important for you to thoroughly look over your monthly credit card statements. Ensure that all of the listed charges are purchases that you made, keeping an eye out for fraudulent charges. It’s up to you to make sure that every item on your bill is correct and dispute those that are not.
Revolving Accounts
Try lowering the balance of any revolving accounts you have. Your credit score can be raised if you lower your balances. Your FICO credit score notes what your balances are on your revolving accounts based on the credit you have available.
Be aware that opening a new credit card account can affect your credit score in a negative way. Fight the temptation to get that credit card at the checkout when they offer you big discounts if you do it. Your credit score will lose points every time you apply for, or are offered, new credit.
Create a plan in order to pay back your debts. Although it will appear on credit reports, they will be paid.
Make any records of any threats that a collector makes because it is highly illegal of them to do that. There are consumer laws which limit the things that a collection agency can do to you.
If you are unable to make minimum payments, contact the better business bureau for information on a trustworthy credit counseling service. These counselors can often arrange affordable repayment plans to get you out of debt, allowing you to focus on making wise financial decisions in the future. A credit counselor can give you the best advice on how to be in control of your finances, and pay off your debts.
Credit Report
Look at your credit report cautiously before claiming that the discrepancies are valid. There could be issues on your credit report that were made in error. Errors can be fixed by disputing it with the credit reporting agency. This takes time but if a mistake has been made, it will be taken off your report.
Make sure to keep a record of your communication with credit bureaus in case they make mistakes. Keep track of all your contacts, including emails and letters, and the information pertaining to any phone calls. If you are going to use a dispute letter, make sure you get it certified so that you can prove it was received by the company.
You should have noticed that the preceding tips have a common theme–they are mostly based on common sense. If you follow this information, you can get to the ultimate goal.
