Having bad credit is an extremely annoying issue to deal with. Instead of getting that house or that job, you are left sitting with a refusal and a copy of your credit report. But, you can fix your credit in a few simple steps and protect it for the future.
Creating a payment plan and sticking with it is just the first step to getting your credit on the road to repair. You need to make a commitment to changing your spending habits. Only purchase something if you cannot live without it. If you are buying something because you want it, and don’t need it, put it back on the shelf.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. 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.
Credit Score
Think about getting an installment account to save money and improve your credit score. Make sure that you are able to afford the payments on any installment accounts that you open. If you are able to keep up with one of the accounts, you should see your credit score improving quickly.
If credit score repair is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. Negative credit information remains on your record for up to seven years. Stay mindful, however, of the fact that false information can be stricken.
Do not do anything that will make you end up in jail. Don’t buy into scams that suggest you create new credit files. This tactic is not legal, and you face serious repercussions if you are caught. They may seem like a small matter, but if you get caught, you could receive heavy fines and even jail time.
Contact your creditors and see if you can get them to lower your overall credit limit. It will help to keep spending under control, and also sends a positive message to potential lenders. This means you might have a better opportunity of obtaining necessary loans in the future.
Before you sign any debt settlement, research what effects it will have on your credit score. Some debt settlements are better than others. Do your homework and find out how your score will be impacted before agreeing to anything. Remember creditors want their money. They really don’t care about your credit scores. That is up to you to protect.
If you find any errors on your credit report, you should dispute them. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter.
Take a look at credit card bills to make sure that every item is one you have charged. If there are, you will need to contact the company immediately to avoid them reporting this to a credit reporting agency,
Payment Plan
If a creditor agrees to give you a payment plan, get that payment plan in writing. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
This simple advice can aid you in repairing your credit issues and help you keep your credit in good shape. No matter how much time you spend researching ways to repair your credit, it will be well worth it, since a respectable credit score is essential to many important financial transactions you will need to make over your lifetime.
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