It can be stressful to deal with having bad credit. Poor financial decisions from years ago can continue to influence your financial well-being in the present. As difficult as it can be, it is possible to improve your credit. Read on to find out how.
Planning is the first step to repairing your credit. You must make a commitment to making changes on how you spend money. Stick to the essentials, and avoid frivolous purchases at all costs. Consider if a purchase is both essential and affordable, and only purchase it if you can answer “yes” on both counts.
If you are unable to get a new card because of your bad credit, try to apply for secured cards. Most people are able to get this type of card, but you will have to load it up with a prepaid amount of money, as a guarantee that you can pay any charges that you make. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
Any of your credit cards with balances that are above 50% of your overall limit need to be paid off as soon as possible, until the balance is less than 50%. Your credit score can diminish with balances over 50%, so spread out the debt or pay off the credit cards.
One thing to watch out for when trying to fix your credit is scammers who say that they can get any negative information deleted from your credit, regardless of its accuracy. Regardless of their claims, these debts will stay on your report for seven years at a minimum. Stay mindful, however, of the fact that false information can be stricken.
Paying your bills is a straightforward, but truly vital prerequisite for credit repair. It is key that you pay them on time and in full. Do the best that you can. When you pay off past due lines of credit your credit score will go up.
Due Date
When you are trying to fix your credit record, call your creditors and make payment arrangements that will benefit both of you. You should contact the company and request a lower interest rate or a due date change if necessary. This can be accomplished by negotiating with them for a change in due date or monthly charges.
Before consulting a credit counseling agency, be sure to check out their background and history. Many counselors are honest and helpful, but others may be less interested in actually helping you. Many others are nothing more than scams. It is wise for consumers to not give out personal information unless they are absolutely sure that the company is legit.
Stay cautious and aware of scams online that can lead you to even bigger problems. Sites may act like you can create new credit lines and tell you how to do it. Do not attempt this because it’s illegal; you will not be able to avoid getting caught. Think of the legal costs and the possibility of doing hard time.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. Write a dispute letter to any agencies with recorded errors, and include supporting documents. Sending your letter by certified mail provides you with proof that the letter was received.
A first step in fixing your credit is to close all credit card accounts that are unnecessary. Aim to only have one account. Try to make a payment or transfer your balance to your open credit account. This will let you focus on paying off a single account rather than many small ones.
Always examine your monthly credit card bill to make sure everything is accurate. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
Payment Plan
If a creditor agrees to give you a payment plan, get that payment plan in writing. You want documentation to back yourself up so there will be no problems in the future, and if the company owner changes you will have more of a chance of keeping your plan. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
Do not file for bankruptcy if you do not have to. Bankruptcies appear on credit reports for ten years. While ridding yourself of most debt may seem ideal, it is not without consequences. 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. Take a second look to make sure that you are being charged only for what you actually purchased. You should ensure everything is okay and does not have any errors.
Avoid using your credit cards whenever possible. Try to make purchases using cash only. If a credit card is used for a purchase, pay the entire balance when the bill arrives.
Be careful of paying for a service or a lawyer that advertises quick or instant credit repair, many of them are dishonest. There are a lot of scam lawyers out there who will charge you a lot of money for credit score repair techniques that don’t really do much. Do your research before calling any lawyer for their help.
You have a long way to go to get the credit score you want from the advice you got here. The greatest thing you can do is to consistently pay your bills on time. It is possible to make your credit better, so don’t delay and get to it!
