Bad credit hurts you in nearly all your financial dealings, especially those that involve extending credit to you. Negative credit can be a hindrance both now and in the future. It is not all hopeless, however. There are ways to repair your credit and get your life back on track. These tips will help you repair your credit without much hassle.
You may be able to get a secured credit card even if your poor credit has prevented you from getting other credit cards. This card is very easy to get, because you put money into an account ahead of time and then spend from that, so the bank doesn’t have to worry about not getting their money. Responsible use of a credit card can help rebuild your credit.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. 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 Report
Negative-but-correct information cannot be removed from your credit report, so be wary of promises from unscrupulous companies who promise to remove it from the credit reporting agencies. All information remains on your credit report for a period of seven years or more. If the information is an error, the credit report can be corrected.
Some sound advice to follow, is to be sure to take the time to contact your credit card company and work with them. When you work with company you are not working against anyone, including yourself. This will help prevent furthering yourself into debt. You can even ask for help, such as pushing back the due date of your monthly payments or reducing the interest rate.
If an action can result in imprisonment, draw the line. The web is full of scams that show you how you can craft a deceptive credit file. You will be prosecuted, it is against the law. You could end up owing a great deal of money or even facing jail time.
Credit Card
Though it is an unsettling prospect, consider asking your credit card provider to reduce the amount of credit extended to you. It will keep you from overextending yourself financially, it sends a great signal to the credit card companies that you are a responsible borrower, and you will have an easier time getting credit in the future.
If you want a higher credit rating, you will need to bring down the balance on any existing accounts. Paying off your balances will have a perceptible positive impact on your credit score. When balances are and increments of twenty percent of your total available balance on that account, the FICO system will take note.
Unfortunately, no financier is going to be interested in the statement you provide when they are examining your credit history. It might actually make things worse by making the negative mark stand out.
Credit cards should be avoided. Use cash to pay for things whenever possible. If a credit card is used for a purchase, pay the entire balance when the bill arrives.
You may get into the situation that you have multiple debts and you just don’t have enough money to pay them all. Take the money you have for bills, and allocate a small amount to several creditors so you can make a little progress with each. Even if you can only meet the minimum payment, you will avoid having the bill sent to collections.
Credit Score
Each time you get a new credit card can negatively effect your credit score. Opening new lines of credit can hurt your score greatly, even if you get approved. This is important because every time new credit is obtained, your credit score suffers.
Contact your creditors directly to work out alternate payment plans if you are having difficulty making your monthly payments. If you contact them proactively, creditors often work with you in developing payment plan that they do not report to credit bureaus. This is also a good idea because it lets you shift your attention to your more inflexible debts, where you don’t have the option of negotiating your payments down.
Build opportunities in your life by fixing your credit history. You can fix your credit, free of charge. Utilize the tips in this article to repair your credit and enjoy the benefits of a high credit score.
