If your credit report contains inaccurate information, your score might be negatively affected, making it harder to get a loan or rent an apartment. You can actually fix your credit yourself and finally have a healthy credit report. Here are a few ideas for fixing your credit.
The first thing you should do when trying to improve your credit is develop an effective plan and make a commitment to adhere to it. Making changes to become a wise spender means you have to make a budget and rules, then follow them. Don’t buy the things that aren’t needs. See if each purchase is necessary and affordable and only purchase something if the answers are “yes”.
Credit Card
If your credit card is carrying more than half of its credit limit, your first priority should be paying it down until it is below 50%. If you owe more than half of your credit limit on any credit card, this will have a negative impact on your rating. Plan to pay down that card as soon as possible, or see about transferring some of that debt.
Your low credit score will cut your interest rates. Lower interest rates make it much easier and quicker to pay off balances. 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.
Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. Although, in reality, you did agree in advance to pay any interest charges incurred. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
A good tip is to work with the credit card company when you are in the process of repairing your credit. Doing so will help you to ensure that you do not go further into debt and make your credit worse. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
Before consulting a credit counseling agency, be sure to check out their background and history. You will find some counselors that truly want to help you fix your credit situation, while others may have different motives. Others are outright scams. Knowledgeable purchasers will always make sure that the credit counselor in question is legitimate before hiring.
Credit Card
Contact the credit card issuer with a request to lower your card’s limit. Not only will this stop you from overspending, it will indicate responsible behavior to a credit card company, and may enable you to get future credit.
Dispute every error you identify on your credit report. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Sending your letter by certified mail provides you with proof that the letter was received.
Carefully check all charges on your monthly credit card statement for errors. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.
Payment Plan
If a creditor agrees to give you a payment plan, get that payment plan in writing. Having the plan in writing will protect you if the creditor reneges on the plan or if your debt is transferred to another creditor. If you manage to pay off your debt, make sure you receive proper documentation as proof to send to credit reporting agencies.
When you pay your bills on time, you are keeping your credit score high. Credit card companies are one of the few businesses that report on a regular basis. Paying late can severely hurt your credit score.
Credit Score
As shown here, if you want your credit score to rise, there are quite a few pro-active steps you can take. The following tips will help you get your credit score back on track. Monitor your credit score and watch these self-help tips produce measurable results.
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