Is your credit terrible? Our helpful tips will lead you in the right direction for credit repair and help you to have a credit report that you can be proud of.
Creating a payment plan and sticking with it is just the first step to getting your credit on the road to repair. Be totally committed to changing your spending habits. Sticking to necessities for a while is crucial. If you are buying something because you want it, and don’t need it, put it back on the shelf.
Credit Card
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. 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.
It’s easy to lower your interest rate by ensuring your credit score is high. Lower interest rates make it much easier and quicker to pay off balances. Receiving competitive credit rates and good offers are important in having credit that you can pay off easily, and that will get you a great credit score.
When you are trying to fix your credit record, call your creditors and make payment arrangements that will benefit both of you. This prevents you from sinking further into debt or further damaging your credit score. Call them and see if you can change the payment terms. They may be willing to change the actual payment or move the due date.
If you are looking into a credit counselor, be sure to find out information about them before you choose to use them. Many companies are legitimate and hold your best interests as a priority, but some are outright scams. Other options are clearly scams. A savvy consumer will always do his or her research on any credit counseling service to ensure that the agency is legitimate.
Credit Score
Find out how your debt settlement contract will make your credit score look. Do some heavy researching before starting an agreement with any creditor; there are other options that may not damage your credit score as heavily. They are just out to get their money and do not care how that effects your credit score.
If you are doing hardcore credit score repair, you need to scrutinize your report for negative entries. The item may be essentially correct, but there may be an error someplace. If the date or amount, or some other thing is incorrect it may be possible to get the entire item removed.
Dispute any errors that you find on any of your credit reports. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
Make sure you will get a plan in writing if you decide a payment plan is the best option for you with your creditor. This is for your protection. It allows you to have valid documentation of the terms in the event that a creditor reneges on its offer or changes owners. When you pay it off, send a written copy of proof of payment to all three credit reporting agencies.
It is important for you to thoroughly look over your monthly credit card statements. Always check to make sure that you are being charged correctly, and not being double charged or charged for items that you did not buy. It is only your responsibility to make sure everything is correct and error free.
Dealing with a debt collection agency is one of the most traumatic parts of a financial crisis. Remember that when dealing with harassing collection agencies, consumers have the option to issue a cease and desist letter to stop the harassment. They can prevent collectors from continuing to call a debtor, but they do not excuse the debtor from his or her outstanding financial obligations.
Build your credit back up to repair it. Utilizing prepaid credit cards allows you to improve your credit score with no concerns about late payments or negative information ruining your credit report. This will make you appear responsible to future potential lenders.
You should make an effort to pay off past due accounts and accounts that have gone to collection. Though they will still be reflected on all three credit reports, they will show as paid so the ill effects are less substantial.
Make any records of any threats that a collector makes because it is highly illegal of them to do that. You need to know what the laws are that protect your rights as a consumer.
Credit Report
As you can see, your credit report no longer has to play the lead role in your worst nightmares. You will feel in control of your finances once your credit is repaired. If you do the tips listed here, you will surely get a good credit report that lots of people dream of.
