Bad credit is a particularly troublesome life problem that can haunt you for years. A bad credit score will make it hard for you to get a loan or apply for housing, among other things. Follow these tips to start repairing your credit.
If you need to repair your credit, the first step is to come up with a workable plan and stick to it. Make a commitment to making better financial decisions. Limit your purchases only to things that are absolutely necessary. Only buy something if you have to have it and you can afford it.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.
Getting a reduced interest rate is the easiest way to reduce your overall debt. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. It is important to take into account the fact that you did sign a contract and agreed to pay off the attached interest. If you plan on suing your creditors, you may be capable of having the interest rates viewed as being too high.
Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. These bad marks stay on your record for seven years or more. However, information that is not correct can be removed.
One of the first steps of improving your credit score is ensuring that your bills are always paid. Your bills must be paid completely and on time. Your FICO score will begin to increase immediately after you pay the bills that are past due.
Before you decide to go through with a debt settlement, you should be sure you know how it will affect your credit. 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 are just out to get their money and do not care how that effects your credit score.
If you find inaccuracies on your credit report, make sure to dispute them. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Send any correspondence by recorded mail to ensure proof of receipt by the agency.
If your credit is poor, take the first step to repairing it by closing out the majority of your cards, leaving yourself just one to use. Transfer your balances to this one card, with the lowest interest, if this is possible. By doing this, you can work towards completely paying off one credit card with a large debt, rather than working piecemeal with many smaller debts.
Make sure you will get a plan in writing if you decide a payment plan is the best option for you with your creditor. If the creditor tries to change the agreement or if it the company is sold to someone else, you will have documentation to support your case. Finally, when it is paid in full, get documentation thereof to submit to credit agencies.
If at all possible, avoid filing bankruptcy. The record of the bankruptcy appears on your report and affects your credit rating for up to 10 years. Although it seems like the wise thing to do at the time, it will bring you negative consequences in the long run. By filing for bankruptcy, you might have a lot of trouble getting a credit card or qualifying for a loan in the future.
Credit Score
The tips within this article will help you repair your credit score and continue to have control over your debts. Having a good credit score is crucial to getting the best interest rates possible and is definitely worth the effort.
This is a limited-time offer. We are not able to guarantee availability if you wait!
