Do you hate your life because your credit sucks? A lot of people’s credit scores are going down in this economy. There are, however, ways to better it, so be sure to read these tips to repair it.
The first step in repairing your credit is figuring out a plan that works for you, and sticking with it. You need to make a commitment to changing your spending habits. Stick to the essentials, and avoid frivolous purchases at all costs. If you are buying something because you want it, and don’t need it, put it back on the shelf.
Secured Credit Card
If you want to repair your credit but do not qualify for a regular credit card, consider a secured credit card. 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.
You can dispute inflated interest rates if you are being charged more than you should be. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. However, you did sign an agreement to pay the interest. The only way you are legally able to sue the creditors is if you are able to prove that your interest rates are much too high.
Paying your bills is something you need to do to repair your credit. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. Your credit score starts to improve immediately upon paying off some of your past due bills.
Work closely with all of your creditors if you are aiming towards repairing your credit. If you do this you’ll find that your debt doesn’t increase and your credit is improved. This can be accomplished by negotiating with them for a change in due date or monthly charges.
Call each of your charge card companies and ask them to lower the limit on them. You will not be able to spend too much and they will see that you are responsible.
Prior to agreeing to a debt settlement agreement, find out how that process is going to impact your credit score. There are ways to go about this that will have less of an impact and should be learned about before you make any kind of deal with a creditor. Remember creditors want their money. They really don’t care about your credit scores. That is up to you to protect.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Mail your dispute packet with receipt confirmation so you will have proof the agency has received it.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. Having documentation is important for your records but also protects you in case a creditor changes their mind. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
Revolving Accounts
To keep your credit in good standing and get a better score, maintain a low balance on revolving accounts. Your credit score can be raised if you lower your balances. Your FICO credit score notes what your balances are on your revolving accounts based on the credit you have available.
It is understandable if you are frustrated about your credit score. Use these tips to change all that. The helpful tips help stop your credit score from falling and make it go up instead.
