Having bad credit can sometimes cause you to feel like you are a victim of circumstances. You might have suffered under the weight of crushing bills, or maybe you were irresponsible when you were younger. Poor credit can make those events haunt you for years. Luckily, there are things you can do today to make your credit better; here are a few great ways to do that.
When you want to fix your credit, you need to start somewhere. Have a realistic plan and stay with it. If you want to change then you have to work hard and stick with it. Sticking to necessities for a while is crucial. Only buy something if you have to have it and you can afford it.
Good credit scores mean you can easily qualify for a home or car loan. You will get a better credit score by paying your mortgage payment on time. Owning a valuable asset like a house will improve your financial stability and make you appear more creditworthy. Having a home also makes you a safer credit risk when you are applying for loans.
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. Regardless of their claims, these debts will stay on your report for seven years at a minimum. If the information is an error, the credit report can be corrected.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.
If you see errors on your credit reports, dispute them with the credit agency. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency.
Credit Card
Too many credit cards is a common cause of financial strain, so close all of your accounts aside from one. You can make arrangements to pay the balances, or transfer the balances of your closed credit card accounts to your single remaining credit card. 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. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
Doing this will ensure that you keep a solid credit score. Each time you make your payment late it will go against you.
You should locate a good credit score repair company to help you. Like any industry making claims to help others with their finances, scoundrels and incompetents are usually only discovered after you have lost money, so do your research up front. Many people fall victim to these scams every day. You need to research customer feedback so you can determine if a company is trustworthy or not.
Don’t use credit cards a lot. Pay for everything you buy with cash instead. If you ever use a credit card, be sure to pay it all in full.
Collection Agencies
Having to deal with a collection agency can be extremely stressful. Consumers can legally issue letters to collection agencies to cease and desist if they are being harassed. These letters will discourage contact from collection agencies. Remember, even when the debt collectors stop annoying you by phone, your obligation to pay what you owe is not alleviated.
Be very careful about credit professionals who state that they could fix your credit quickly. Because so many people are experiencing credit problems due to the economy, shady lawyers that advertise useless, possibly illegal credit restoration services have appeared. Make sure any credit score improvement service you consider has a positive standing with the BBB.
Building your credit back up is the number one way to fix a bad credit score. Prepaid credit cards offer a risk and worry free opportunity to slowly increase your credit score. Doing so indicates to the person lending that you are a responsible person.
Be sure to document all information if a collector threatens you; this is not legal. Know the laws in your state that can protect you from illegal practices.
People with bad credit often feel as if there is no way out of their financial crisis. Following these tips to improve your credit score will help you take charge and have a more positive attitude.
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