There are a lot of ways to damage your credit score, from falling for a credit card scam to just being unlucky with the recent economy. Fortunately, there are actions you can partake to reverse this.
Secured Card
If you can’t get a normal card due to low credit score, look into a secured card. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. If you use it correctly, a new card can help you fix your credit.
Pay down the balance on any credit card that is 50% or more of the credit limit. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
You will be able to get a lower interest rate if you keep your personal credit score low. This will help you afford your payments, and get out of debt quickly. Try to get the best offer and credit rates so you can increase your credit score.
Never trust a business or person who offers to clear up your credit for a price. Especially if it is correct information they say they can remove. This information can stay on your record for about seven years. But, you should remain mindful of the fact that errors can be deleted from your report.
You need to work with the companies from whom you have credit cards. If you do this you will not go into debt more and make your situation worse than it was. You can accomplish this by simply calling and asking them to change payment terms, like your interest rate or your billing date.
Credit Counseling
Make sure you check out any credit counseling agency you consider using. There are a lot of unscrupulous agencies scattered in among the few legitimate credit counselors that are really there to help you. You’ll find that other ones are just scams. A savvy consumer will always do his or her research on any credit counseling service to ensure that the agency is legitimate.
Find out how your debt settlement contract will make your credit score look. Some debt settlements are better than others. Do your homework and find out how your score will be impacted before agreeing to anything. Debt settlers are more interested in their money than your credit rating.
Make sure you review all of the negative marks against you on your credit report. Even if the negative credit item itself is not erroneous, if any of the data pertaining to it is, then you may be possible to have it removed from your credit report.
Credit unions are an option for those who have run out of options when trying to find a line of credit to boost their score. Credit unions typically offer a wider variety of credit options at better interest rates than a traditional bank. Credit unions are usually non-profit, which means better deals for you.
If you find any errors on your credit report, you should dispute them. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Also include a request for a return receipt to make sure the agency gets it.
It will be easier to increase your credit rating if you only have one open credit card account. You may be able to transfer balances to your remaining account. This will let you focus on paying off a single account rather than many small ones.
Examine your credit card charges monthly to ensure they are correct. If there are late fees you don’t deserve, act as soon as possible to get the matter resolved before it can affect your credit score.
Carefully read all of your credit statements. Look for any changes that have happened, and make sure they are correct. You do not want to end up paying for a purchase that you did not make. You are the only one that can verify if everything on there is the way it should be.
Look for a credit restoration company that has good reviews online and is legitimate. There are a lot of credit repair agencies that you will want to avoid. Lots of people get taken in by scammers. Reading unbiased customer reviews will help you decide what company you want to work with.
Your credit cards are not doing you any favors; avoid using them. Purchase with cash. If you ever use a credit card, be sure to pay it all in full.
Sometimes you have a large number of outstanding credit bills that need your attention, overwhelming you. Be sure to give a portion of your spendable income to each of your creditors. Even if the payments you are making are the minimum ones, these small payments will still somewhat please your creditors, which will likely stop them from getting in touch with collection agencies.
Credit Score
Repairing a poor credit score can seem like a daunting task, but improving your score is possible with guidance and knowledge. Apply the advice from this article to start your march toward better credit score days.
