If your credit reports contains any inaccurate information, it can affect your ability to obtain any new credit. Repairing your credit yourself is the surefire way to getting your financial life back on track. Check out the following tips on how you fix your credit on your own.
Credit Card
Pay down the balance on any credit card that is 50% or more of the credit limit. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
You can get better interest rates on credit cards and loans when you have a good credit score. This allows you to eliminate debt by making monthly payments more manageable. Getting a good offer and competitive credit rates is the key to credit that can easily be paid off and give you a good credit score.
When you’re looking to fix your credit, be cautious of credit score improvement companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. These bad marks stay on your record for seven years or more. However, if there is incorrect information, you can have it cleared up easily by yourself.
Outright Scams
Before using a credit counselor, it’s important to research them completely. Many companies are legitimate and hold your best interests as a priority, but some are outright scams. Some companies you may find are outright scams. Consumers should always check to see if a credit counselor is not a scam before deciding to use them.
Requesting that your credit card limits be lowered can benefit you. This is likely to keep you from overusing credit, which can be a financial burden. It also lets credit card companies know that you are responsible, and this makes them more likely to extend credit to you as time goes on.
Credit Score
Before agreeing on settling a debt, find out how if the process will raise or lower your credit score. Some settlement agreements can actually be bad for your credit score, so be wary and do your homework. They do not worry about how your credit score looks; they want to get money.
Check any negative items on your reports carefully when you begin fixing 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.
Credit Unions
Sign up with a credit union if you need to get a new credit line and are having a hard time. 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.
Always examine your monthly credit card bill to make sure everything is accurate. 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.
Try not to file for bankruptcy. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. Bankruptcy not only zeros out your debt, it also zeros out your credit score. You may never get a line of credit for any purchases you might need to make if you go ahead, give up on repairing your credit and file for bankruptcy.
This is to keep your credit in good standing. Paying late is placed on your credit report which can hurt your chances of getting a loan.
Reducing the outstanding balances on some of your credit cards can improve your credit rating. Paying off your balances will have a perceptible positive impact on your credit score. When balances reach anywhere from 20-100% of your available credit balances (in 20% intervals), the FICO system will make a note.
Work with a credible credit score improvement service. There are a number of agencies out there that are really not that helpful. Some people have gotten scammed by these credit agencies. Take the time to read reviews of different agencies. This will allow you to find an honest one to work with.
Our initial inclination is to defend ourselves, but in truth, lenders will not even glance at your defending statement. It is possible that this can be detrimental by drawing closer scrutiny to your report.
Credit Score
As discussed here, there are a variety of ways to improve your credit. If you follow our helpful tips you should see a nice rise in your credit score. A good way to enhance your credit score is DIY credit score improvement.
