It can be stressful to deal with having a bad credit score. A bad credit score can be particularly irritating if it constantly reminds you of the bad mistakes that caused the drop in your credit score. Rebuilding credit may be challenging, but it is not impossible. Get ready to rebuild your credit with the following proven tips.
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 let your balances get too high, your credit rating will drop significantly. You can either spread your debt out by transferring some of the balance to low interest cards, or better yet, pay off as much as you can.
Interest Rates
If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. There are laws that protect you from creditors that charge exorbitant interest rates. Remember you agreed to pay any interest that accrued over the life of the account. Should you sue any creditors, it is important to push the fact that the interest rates are outrageously high.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. Negative credit information remains on your record for up to seven years. It is possible to have erroneous information removed from your report, however.
Work closely with all of your creditors if you are aiming towards repairing your credit. This will help you stabilize your situation and start working towards a better financial situation. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
If an action can result in imprisonment, draw the line. A common scam involves teaching you how to make a completely new, albeit fraudulent, credit file. This is illegal and you will eventually be caught. You may end up in jail if you are not careful.
Credit Card Company
Give your credit card company a call and ask them to lower the limit on your credit card. 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.
If you see errors on your credit reports, dispute them with the credit agency. Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. 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.
If you are able to negotiate a repayment plan with your creditor, be sure to get it 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. If you have finished paying it off, you should request a confirmation so you can send it to the credit reporting agencies.
One of your main tasks in credit repair is paying off your cards as fast as you can. First, pay down your credit card balances, starting with the highest interest. This action will show creditors that you are being responsible with credit.
Take the time to carefully go over all your credit card statements. It’s up to you to ensure that the charges on your bill are correct and that you haven’t been double charged, overcharged or charged for something you didn’t buy. You need to be sure that everything is correct on the statements.
You should keep a low balance on your credit cards to improve your credit rating. You can up your credit score by just keeping your balances lower. The FICO system will make a note when the balances are at 20, 40, 60, 80 and 100 percent of the total credit available.
Credit Improvement
An experienced, honest credit improvement agency can be very helpful. There are lots of disreputable credit repair agencies out there. A fair number of people have been scammed by these unethical credit improvement companies. Use online reviews and other resources to find an honest agency that can help you.
If you follow the tips in this article, you will see positive results in building your credit score back up. Most importantly, you want to have a consistent plan and stick to your commitments. It is possible to repair your credit, so get to work!
This is a limited-time offer. We are not able to guarantee availability if you wait!
