You have most likely done damage to your credit, whether you got a card from friends, went on too many shopping trips or were hit by economic pressures. You can turn things positive on your credit report by starting with these steps.
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 be negatively impacted if you are carrying a large balance compared to the available credit you have. While you are paying off these cards, reduce the balance to a small percentage of your available limit.
Maintaining a respectable credit score will enable you to obtain lower interest rates. It will lower your monthly payments, so your debt will be taken care of at a much quicker rate. Compare offers and choose the best interest rate you can find when borrowing money or subscribing to a credit card.
If credit restoration is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. Sadly, harmful entries remain on your report for roughly seven years. You can erase information that is incorrect from your credit record.
Contact your creditors and see if you can get them to lower your overall credit limit. Not only will this prevent you from owing more, but it will be reflected in your credit score because it shows that you are responsible with your credit.
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. The creditor does not care what happens to your credit score, as long as they get their money.
If getting a new line of credit is vital to your credit improvement efforts, look into joining a credit union. They might be able to provide you with several more options at better rates than banks, since they work locally as opposed to nationally.
Dispute any errors that are on your credit report so they are removed. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Your letter should be sent with a request for return receipt, so you can have a record that it was received by the reporting agency.
If you have bad credit, have your credit cards merged into one single account. Try to make a payment or transfer your balance to your open credit account. Paying off one main credit card will be easier than paying off several cheaper ones.
If a creditor agrees to give you a payment plan, get that payment plan in writing. This is the only way that you have of protecting yourself. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
Paying the balances of your cards as fast as you can will help your credit score. Begin by paying down those credit cards that carry the highest interest rates or the highest balances. Doing so shows your creditors that you are taking your debt problem seriously.
Having to deal with debt collectors is often very stressful and distressing. A consumer had the option of making use of cease and desist statements to persuade collection agencies, but remember that C&D statements only prevent them from harassing you. Remember, even when the debt collectors stop annoying you by phone, your obligation to pay what you owe is not alleviated.
Don’t believe the hype of lawyers or other offices that promise they can immediately fix your credit score. Due to the large number of people experiencing credit difficulties, predatory lawyers have sprung up who charge big fees for credit improvement services that are either useless or illegal. Do the research on your lawyer before you call them.
Nursing your credit back to good health is not as hard as it looks at first, especially when you are willing to make a persistent effort and listen to good advice. Use what you’ve learned in this article to start fixing your credit and improve your credit score.