With this downward economy, it is no surprise that millions have poor credit scores. Read on for some insightful techniques to improve your credit.
Financing homes can be made more difficult when your credit score is low. Look into alternative financing options like FHA loans. FHA loans can even work when someone lacks the funds for down payment or closing costs.
If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. When your debt is over 50%, credit ratings usually go down. With that said, try to spread out the debt that you have or try paying it off.
Interest Rates
You can dispute inflated interest rates if you are being charged more than you should be. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. However, the contract you signed ensured that you agreed to pay off your interest. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. It is key that you pay them on time and in full. Do the best that you can. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
Working closely with the credit card companies can ensure proper credit restoration. 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.
Credit Score
Before going into debt settlement, find out how it will affect your credit score. 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. Creditors just want their money and really aren’t interested on how it will affect your score.
If you are doing hardcore credit improvement, you need to scrutinize your report for negative entries. Even if a charge held against you is legitimate, any problems with its details, like the date or the amount owed, could make the entire entry invalid and eligible for removal.
Anything on your credit report that you feel is inaccurate should be disputed. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.
Do not live beyond your means. If you’ve been living outside your means, then get ready for a reality check. Getting credit has never been easier, making it just as easy for people to buy items they simply can’t afford. This, though, comes with a hefty interest price tag. Be sure to assess your finances and find out the things that you can afford.
Try to pay down all of your debts until you’re only carrying a balance on one. You should plan on how you will pay the remaining open balances, or how to consolidate them into one account. It is much easier to manage one large monthly payment than it is to keep track of multiple smaller ones.
Credit Card
Taking time to examine your monthly credit card bill is critical to ensure that there are no errors. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.
If you and your creditor decided to set up a payment plan, you should first get the details of the plan in written form. The documentation you gain from the creditor is important in case the company changes ownership or the creditor is no longer interested in the deal. After you have paid off your debt, send proof of this to the major credit agencies.
Do everything you can to avoid bankruptcy. This will show up on your credit for around 10 years. It may sound like a good idea at the time to rid yourself of all your debt, but it will affect you later on. It may be hard to get a credit card or a loan if you declare bankruptcy.
Making your payments on time shows lenders that you are serious about maintaining good credit. Every time you pay late it is put on your credit report and will hurt you if you ever need a loan taken out.
Look for a credit repair company that has good reviews online and is legitimate. There are far too many of these companies that are quite simply fraudulent. Indeed, some people have fallen prey to credit score repair scams. You can separate the scam artists from the good agencies by relying on user reviews found online.
Although they mean a lot to you, these statements are often set aside when lenders go over your credit history. There is also the possibility that it will just draw attention to that negative event instead of it being overlooked.
Put your credit cards on lock down and don’t use them at all, if possible. Use cash when you need to buy something. If you are forced to use credit, pay it back immediately.
Collection Agency
One of the most nerve-racking aspects of being in debt, and having bad credit, is dealing with collection agencies. If a debt collection agency is harassing you, writing a cease and desist letter can stop the harassment. A letter like this may stop a collection agency from harassing you, but you are still on the hook to pay your debts.
Now that you are armed with the information you need to repair your credit, don’t postpone implementing your plan. Low credit scores can adversely affect the actions you take in life so start now to begin increasing your credit rating.
