Are you struggling with your bad credit? In these depressed economic times, a lot of folks are watching their credit ratings sink. Fortunately, there are lots of ways in which you can improve your score. Here are some credit repair tips that you can follow.
If you have a poor credit history and can’t qualify for a credit card, get a secured card. This card is very easy to get, because you put money into an account ahead of time and then spend from that, so the bank doesn’t have to worry about not getting their money. Using this card responsibly will improve your credit rating over time, and eventually you’ll be able to get a normal credit card again.
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%. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.
Credit Score
Once you have your credit score higher, you will be able to finance a house. Making regular mortgage payments will also help your credit score. Credit rating companies will judge you a reliable risk when you have verifiable assets such as a home. Financial stability is important should you need a loan.
If you want to boost your credit score and earn a decent living, open an installment account. You have to keep a monthly minimum on an installment account, so make sure you open an account that you can afford. By successfully handling the installment account, you will help to improve your credit rating.
Due Date
You should consider talking to directly with your creditors when you are trying to improve your credit. You should contact the company and request a lower interest rate or a due date change if necessary. Do not be afraid to call your credit card company and ask if you can make changes to your due date or your minimum payment amounts.
When trying to repair your credit, research any credit counselors you consider using very thoroughly. Some credit counselors offer real help while others have more dubious things in mind. Also be aware that there are other credit counseling services run by dishonest people. These services are scams and should be avoided at any cost. You should research any counseling service you are considering prior to initiating communications with them.
Don’t risk prison. You should steer clear of internet programs that show you how to clear your credit. Of course, this highly illegal, and it will cause you even more problems, because it will not go unnoticed. Taking these short cuts will end up costing you money and could lead to a stay in jail.
As part of your credit improvement process, it is a good idea to terminate all of your credit cards except one. Make necessary arrangements to set up payments, or transfer the balance to your remaining account. It will be easier for you to make payments on a single credit card account, as opposed to several.
Statements like these will only be ignored, so it’s not worth the trouble. The statement will only draw further attention to negative reports on your credit history.
Keep your credit cards in your wallet. Pay with cash whenever possible. Any credit card purchases should be paid in full the same month of purchase. Do not carry a balance on your cards.
Do not open more lines of credit that you can afford. Avoid obtaining checkout credit cards that offer huge discounts. This is important because every time new credit is obtained, your credit score suffers.
Make any records of any threats that a collector makes because it is highly illegal of them to do that. Laws which protect debtors exist, and it’s vital that you understand them.
Consumer Credit Counseling
If you’re having trouble with creating, or living within, a budget, consult a highly regarded consumer credit counseling agency. These companies will work out a repayment plan with your creditors, and help you to take control of your finances. Consumer credit counseling services can provide you with effective ways to better manage your money and pay off debt.
If you felt bad about your credit score, use these strategies to change that. This information can assist you in stopping the downward direction of your FICO credit score, and making it head back up.