Repair Your Damaged Credit Score Using Expert Advice

Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. Fortunately, there are actions you can partake to reverse this.

If you are unable to get a new card because of your bad credit, try to apply for secured cards. Secured credit card applications have a high rate of approval because you must fund a security deposit against your credit limit. Even though this card will be secured by your own money, you will make payments and manage it as if it were unsecured. This will improve your credit as you show yourself able to make the payments on time.

Your interest rate will be lower if you have a good credit score. Lower interest rates make it much easier and quicker to pay off balances. Try to get the best offer and credit rates so you can increase your credit score.

Credit Score

If your credit is top-notch, getting a mortgage is a simple matter. Making your mortgage payment on time each month will also boost your credit score. Home ownership also means you have assets that you can rely on to increase your credit score. Having a home also makes you a safer credit risk when you are applying for loans.

One thing to watch out for when trying to fix your credit is scammers who say that they can get any negative information deleted from your credit, regardless of its accuracy. Negative entries that are otherwise accurate will stay on your credit report for a minimum of seven years. Stay mindful, however, of the fact that false information can be stricken.

In order to start repairing your credit, you need to start paying your bills. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. You will immediately see changes in your credit score when you begin to pay off your debts, especially those that are active.

Credit Card Company

A good tip is to work with the credit card company when you are in the process of repairing your credit. Avoid collection to improve your credit score. Contact your credit card company and request to change your scheduled due date or interest rate.

You should look over all negative reports thoroughly when attempting to fix your credit. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.

If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. This provides you with documentation that an agreement is in place in case the company changes hands or the creditor tries to change the terms of the agreement. After you have paid the debt off completely, keep your receipt in case there are any discrepancies on your credit report.

Revolving Accounts

Try lowering the balance of any revolving accounts you have. Your credit score can be raised just by reducing your balances. Your FICO credit score notes what your balances are on your revolving accounts based on the credit you have available.

Make sure the credit repair agency you are working with is legitimate. There are a number of agencies out there that are really not that helpful. There are numerous people that have been the victims of credit restoration scams. Reading unbiased customer reviews will help you decide what company you want to work with.

Avoid using your credit cards at all. Using cash will ensure that you stick to your budget and don’t overspend. When you find credit card spending unavoidable, pay down your balance immediately.

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Debt Collection

Debt collection agencies are the most difficult part in having bad credit. If a debt collection agency is harassing you, writing a cease and desist letter can stop the harassment. You will still have to pay what you owe even if collection agencies stop calling you.

It is the worst when you have many debts that you are unable to pay. Split your available funds and make sure that you make payments on each of your debts. Even if all you’re making is minimum payments, this will keep you out of collections.

The only way to repair credit is to be more responsible with your credit accounts. A secured credit card, one that is prepaid, will help you improve your credit score. Lenders look favorably towards you when you faithfully pay your bills on time.

Repairing a poor credit score can seem like a daunting task, but improving your score is possible with guidance and knowledge. Apply the tips you learned here and get started on your way to good credit.

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