Having a poor credit score is among the most frustrating situations that takes the fun out of life. It can cause you to miss some great opportunities and take away some financial options. Here are a few easy tips on how you can fix your credit and make sure it stays positive in the future.
Having a good record allow you to qualify for things like a home mortgage. Staying current with your mortgage payments is a way to raise your credit score even more. Owning your own home also improves your credit score in the form of having large assets to borrow against. Having a home also makes you a safer credit risk when you are applying for loans.
Getting an installment account can help you earn money and provide a boost to your credit. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. If these accounts are properly managed, they can provide a quick boost to your credit score.
Credit Score
Paying your bills is a straightforward, but truly vital prerequisite for credit score repair. You should pay your bills in full each month. Do not let them fall behind again and get yourself in trouble. As soon as you start paying off your bills so that they are not late, your credit score will immediately start going up.
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. This will help you stabilize your situation and start working towards a better financial situation. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
Call and request lower limits on your cards from the credit card companies. You will not be able to spend too much and they will see that you are responsible.
Debt Settlement
Don’t sign a debt settlement contract until you know what impact it is going to have on your credit score. Some debt settlement methods can hurt your credit even more, and you should be sure of how it will affect you. Creditors just want their money and really aren’t interested on how it will affect your score.
This is one of the quickest way to create and maintain a credible financial record. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
Lowering the balances you carry on revolving accounts can improve your credit score. Your credit score can be raised just by reducing your balances. The Fair Isaac Corporation, FICO system tracks how much of your available credit you are using in 20 percent increments.
Look for a trusted credit repair agency to help you. There are lots of disreputable credit improvement agencies out there. Lots of people get taken in by scammers. By reading user reviews online, you will be able to separate the good from the bad.
Try to use credit cards only for purchases you can afford to pay off. 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.
Collection agencies are stressful to deal with. You can get a collection agency to cease and desist from harassing you but this does not discharge the debt. Remember, even when the debt collectors stop annoying you by phone, your obligation to pay what you owe is not alleviated.
Repair your credit by building it up again. Because it does not carry the risk of late payments that would hurt your credit score, getting a credit card that is prepaid will give you a very safe way to employ credit. This shows lenders that making payments is a priority for you, and that they should lend to you.
Credit Score
Every time you open a new line of credit your credit score is going to suffer. If you want to keep your credit score high, you need to resist the urge to open new accounts. This is important because every time new credit is obtained, your credit score suffers.
It is illegal for companies to threaten you during collections. Take a written account of it to pursue action against them. Know the laws in your state that can protect you from illegal practices.
If you can’t make your monthly payments, contact each of your creditors to see if you can work out a payment plan you can afford. Often, a creditor will work with you to devise a repayment plan that is not reported to credit bureaus if you are proactive about contacting them. Furthermore, this can help to redistribute your financial resources in a way that allows you focus on repaying debts that fall under more stringent terms.
Payment Reminders
Paying your bills in a timely manner is an important aspect of anyone’s credit score. Sign up for payment reminders to make sure you remember to make payments. There are a variety of ways to setup payment reminders. Set up your online account so that an email is sent to you or have your debtor text you a reminder.
Make a thorough inspection of your credit report to search for any possible errors. Credit reports are not perfect. Incorrect information is sometimes reported, and errors can be made when compiling your report. All of the credit reporting agencies have procedures in place for disputing inaccurate information. It doesn’t happen overnight, but you can get it cleared if you are in the right.
Go over your credit reports from the major agencies, and have any false information wiped from your files. You should keep a diary of all phone calls, emails, or letters you send. Use certified mail to send dispute letters so that definitive proof exists that they are sent and received.
This simple advice can aid you in repairing your credit issues and help you keep your credit in good shape. Since having a solid credit rating is vital for various transactions, time spent learning how to repair your credit is not wasted.
