Knowing how much was owed, as well as to whom, could have helped you avoid the downgrading of your credit score. At this point, you need to roll up your sleeves and start doing what is needed to fix your credit. Follow these tips to repair a bad credit score quickly and efficiently.
Make sure that you are never using more than 50% of your credit card’s limit. Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.
If you want to boost your credit score and earn a decent living, open an installment account. An installment account requires a monthly payment, make sure you can afford it. Your credit score will significantly get better if you get an account.
Interest Rates
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. Your initial agreement likely included a commitment to pay 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.
No credit repair company can remove factual information, no matter how damaging, from your credit report. These things are, generally, on your record for seven years. It is true, however, that you can remove inaccurate information from your report, but you do not need the assistance of a consultant to do so.
Ask credit companies to lower all of your card limits. It will pay off in lowering the risk of excessive borrowing and reflecting good financial decision making on your behalf.
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. They do not care about the effects of what they do to your credit score and are just in it for the money.
If you’re trying to fix your credit, be sure to check all your negative reports carefully. While the credit item itself may not be in error, if you can find a mistake in the date, amount, or any other factor, you may be able to have the whole item removed from your report.
If you find inaccuracies on your credit report, make sure to dispute them. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
Do not file for bankruptcy. The record of the bankruptcy appears on your report and affects your credit rating for up to 10 years. It might seem like a good thing but you will be affected down the line. If you choose to file bankruptcy, you’ll be unable to get a credit card or loan in the future.
Credit Report
Paying your credit cards on time keeps you in good standing on your credit report. Paying late is placed on your credit report which can hurt your chances of getting a loan.
Some of the worst stress you experience with bad credit is caused by debt collection agencies. Consumers can try to use a cease and desist letter if an agency is harassing them, but their usefulness is limited. While such letters stop collection agencies from calling, the consumer is still obligated to pay the debts being disputed.
If you are trying to fix your credit, be aware of lawyers who claim to instantly fix your credit. Because so many people are having credit problems, predatory attorneys have appeared who charge exorbitant fees for useless or illegal credit improvement schemes. Make sure any credit restoration service you consider has a positive standing with the BBB.
As this article indicates, paying off your debts and raising your credit score require a pragmatic approach more than anything else. The advice in this article can help you get your credit back in good standing.
