You might have gotten sucked in by Capital One’s pre-approved credit offers, or maybe you got into some medical debt. In any of these cases, you likely hurt your credit at least a little. Fortunately, there are quite a few ways that you can remedy your credit situation.
When attempting to make your credit right once more, it is imperative that you present a solution to all those that you owe money to, and don’t deviate from anything you commit to once it is in place. You must be committed to making real changes in the way you spend money. Pay cash for things, and cut out unnecessary expenses. You should only make a purchase if it is necessary and it fits in your budget.
Good credit scores allow you to take out loans, buy a house, and make other large purchases. Paying down your mortgage improves your score as well. Having a major asset like a house also looks good to potential creditors. Having a home also makes you a safer credit risk when you are applying for loans.
Installment Account
Try an installment account to get a better credit score and make some money. With an installment account there is a monthly minimum you need to keep, so only open an affordable account. If you can manage one of these accounts, your credit score should improve quickly.
If you are looking to repair your credit, then you should not believe a company if they promise they can remove negative information from the report. Specifically if this information is correct. Regardless of their claims, these debts will stay on your report for seven years at a minimum. It is possible to have erroneous information removed from your report, however.
Make sure you thoroughly research into any credit repair agency or counselor before you do business with them. While some counselors are legitimate, offering genuinely helpful services, others have ulterior motives. Others are outright scams. To help protect yourself from fraud, investigate any credit counselors. One way to check an agency out is to check with the Better Business Bureau.
Don’t risk prison. You should steer clear of internet programs that show you how to clear your credit. Do not attempt this because it’s illegal; you will not be able to avoid getting caught. The legal proceedings will be costly, and you may even be sent to jail.
You can contact your creditors and request a lower limit. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.
Debt Settlement
Before you agree on an agreement for settling your debt settlement, you should determine what affect this will have on 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. Some debt settlement companies are only after profits and do not communicate the likely consequences of their methods.
If you find any errors in your credit reports, you should dispute them. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Sending your letter by certified mail provides you with proof that the letter was received.
Be certain to get any credit repayment plan in writing. This will give you important documentation in case of an ownership change or if the creditor tries to back out of the agreement. You also want it in writing if it gets paid off so you can go ahead and send it to credit reporting agencies.
Bankruptcy should be a last resort. Doing so will reflect upon your credit score and report for 10 years. You may think that bankruptcy is your only option to rid yourself from debt, however look at your long term financial goals before deciding to file for it. If you do file for bankruptcy, it will be extremely difficult to get approved for a loan or a credit card for many years, if ever.
Credit Score
At first, it may seem impossible to repair your damaged credit. However, with some effort and the right advice, you can start to improve your credit rating and eventually regain a credit score that will instill faith in any lender. Use what you’ve learned in this article to start fixing your credit and improve your credit score.