You need not suffer the effects of bad credit, no matter how you wound up with credit problems. Whether you have been personally damaged by economic conditions, victimized by dishonest lenders or even were simply too carefree in your spending, you deserve better credit. Luckily, there here are some steps that you can take to turn things around.
With a good credit score, you can easily buy a house and mortgage it. Making your mortgage payment on time each month will also boost your credit score. Owning your own home gives you a significant asset to use in securing your finances, and your credit score will reflect that asset. Having a good credit score is a key factor if you ever need to take out a loan.
If your debt includes large amounts for interest charges contact the debt collector and see whether you can pay the original debt and avoid some of the additional interest charges. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. You did however sign a contract that agrees you will pay off all interests as well as the debt. 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.
When you’re looking to fix your credit, be cautious of credit repair companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Unfortunately, negative marks will stay on your record for seven years. You can erase information that is incorrect from your credit record.
Never hire a credit counseling company without doing some research, so as to ensure they are a reputable organization. While many counselors are reputable and exist to offer real help, some do have ulterior motives. You’ll find that other ones are just scams. Smart consumers make sure that a credit counselor is legit before starting to exchange any money or sensitive information.
When you want to rebuild your credit, take a close look at any negative reports that are harming your credit. The item may be essentially correct, but there may be an error someplace. If the date or amount, or some other thing is incorrect it may be possible to get the entire item removed.
Credit Union
Try joining a credit union to begin a credit score. You may find that the credit union has more options and better rates to offer you than banks will.
If you find inaccuracies on your credit report, make sure to dispute them. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Your letter should be sent with a request for return receipt, so you can have a record that it was received by the reporting agency.
Try to pay down all of your debts until you’re only carrying a balance on one. You should arrange to make payments or make a balance transfer to your open account. This will let you focus on paying off a single account rather than many small ones.
Make sure to review your credit card statement monthly to make sure there are no errors. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
Avoid filing for bankruptcy. This will reflect on your credit report for the next 10 years. It might seem like a good thing but you will be affected down the line. It may be hard to get a credit card or a loan if you declare bankruptcy.
Pay the balances on all credit cards as soon as you can to start the credit score repair process. Pay down your cards that have the highest interest and largest balances first. This will show creditors that you are responsible with the cards.
You may want to argue against the reports, but potential lenders will not take your statements into consideration. Do not draw more attention than needed to the bad marks on your report.
Debt Collection
One of the most stressful aspects of handling bad credit is dealing with debt collection agencies. If a debt collection agency is harassing you, writing a cease and desist letter can stop the harassment. They can prevent collectors from continuing to call a debtor, but they do not excuse the debtor from his or her outstanding financial obligations.
When repairing your score, be cautious of law offices and lawyers that promise fixes for credit. Some lawyers have chosen to take advantage of the people who have bad credit by charging a lot of money for things that are useless to their credit or are illegal. Prior to contacting any lawyer for help fixing your credit, investigate him or her thoroughly.
Repairing the credit you damaged might seem overwhelming, but you can fix your credit with effort and the right kind of information. The information given in this article is sure to lead you to a higher level of financial security.
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