Having bad credit can create a feeling that you are victimized by your own personal finances. The circumstances that lead to bad credit are rarely ones you want to look back on fondly, but a low credit score provides a constant, irritating reminder. The good news is there are many ways to improve your credit. Get started today with these tips.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.
Credit Score
You can get a house mortgaged at the snap of a finger if you have a high credit score. If you pay your mortgage as agreed, your credit score will rocket into the stratosphere. Owning your own home also improves your credit score in the form of having large assets to borrow against. This will make taking out future loans much easier.
Paying your bills is something you need to do to repair your credit. You should always make an effort to pay your bills on time and in full. When you pay off past due lines of credit your credit score will go up.
When you are trying to fix your credit record, call your creditors and make payment arrangements that will benefit both of you. Maintaining contact shows your good faith and can help you minimize further debt. Contact your credit card company and request to change your scheduled due date or interest rate.
Do not try something that you do not know is legal or illegal. A common scam involves teaching you how to make a completely new, albeit fraudulent, credit file. This is illegal and you will most certainly get caught. Not only can legal fees add up, but you could end up in jail.
Before you agree to settle your debt, you need to know how your credit will stand afterwards. 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. They are just out to get their money and do not care how that effects your credit score.
If you come across a mistake on your credit report, don’t hesitate to dispute it. Contact the credit agency in writing, with documentation to support the errors that you are disputing. Sending your letter by certified mail provides you with proof that the letter was received.
Do not spend beyond your means any longer. You will have to change your thought patterns in order to get your debt under control. In years past, many people relied on credit cards to make major purchases, but now those risky financial choices are catching up with them. Examine your budget, and figure out how much extra money you have to shop with.
Any time you establish any payment plan with any creditor, make sure you get it in writing. Having the plan in writing will protect you if the creditor reneges on the plan or if your debt is transferred to another creditor. Once you finish making all your payments, be sure to send that information to the credit agencies in writing.
Pay off your entire balance on your credit card in order to repair your credit. No matter what the balances are on your credit cards, pay down the highest interest rate cards first. By doing this, you will show your creditors that you are trustworthy with your credit.
Credit Card
Make sure to fully read every single credit card statement that you get. Make sure you aren’t paying for purchases you didn’t make. Do not trust the credit card companies to have your back, guarantee you do not pay debt that is not yours yourself.
Try and pay down any revolving account balances in order to boost your credit score. You can up your credit score by just keeping your balances lower. When balances reach anywhere from 20-100% of your available credit balances (in 20% intervals), the FICO system will make a note.
When you have poor credit, you can feel badly about your financial life and think that it will never get better. Here are some helpful hints for turning your credit around.
