There are many ways that an imperfect credit score can affect your life. If you have made some bad choices in the past, it can be even more frustrating. Although getting your credit back up to speed can be difficult, there is no reason why it cannot be done. Here are some excellent tips that can assist you in rebuilding your credit.
There are secured credit cards available if your credit rating is too low to open up a regular credit card account. You will most likely be approved for this type of card, but you will have to add money to the card before you can use it so the bank will know that you can pay for all of your purchases. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
No credit improvement company can remove factual information, no matter how damaging, from your credit report. You have to wait for seven years before negative data can come off your record. Incorrect information may be erased though.
In order to start repairing your credit, you need to start paying your bills. Pay these bills on time, and make sure you pay the full amounts owed. Your FICO score will begin to increase immediately after you pay the bills that are past due.
If you are looking into a credit counselor, be sure to find out information about them before you choose to use them. You will find some counselors that truly want to help you fix your credit situation, while others may have different motives. Some companies you may find are outright scams. You should research any counseling service you are considering prior to initiating communications with them.
Contact the credit card issuer with a request to lower your card’s limit. You will not be able to spend too much and they will see that you are responsible.
Check any negative items on your reports carefully when you begin fixing your credit. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.
If you find any errors on your credit reports, dispute them. You should compose a letter to the agencies that have made the errors, and provide proof that you are correct. Sending your letter by certified mail provides you with proof that the letter was received.
Credit Card
A first step in fixing your credit is to close all credit card accounts that are unnecessary. Aim to only have one account. It is important to make small payments or transfer a balance to the open account. This way you can work on paying one credit card balance off, instead of a bunch of smaller ones.
You should look at your credit card bill every month to make sure it is correct. You don’t want them reporting these to the credit reporting companies, so you’ll need to contact them immediately if there are.
If you and your creditor decided to set up a payment plan, you should first get the details of the plan in written form. The documentation you gain from the creditor is important in case the company changes ownership or the creditor is no longer interested in the deal. When you pay it off, send a written copy of proof of payment to all three credit reporting agencies.
Carefully read all of your credit statements. Really analyze the purchases on your card to make sure you are not receiving any errant charges for items you never purchased. You are responsible for the accuracy of information on your credit card statments.
Credit Score
Lowering the balances on any currently revolving accounts will increase your credit score. Just lowering your balances can raise your credit score. The FICO system notes when balances are at 100, 80, 60, 40 and 20 percent of your total credit available.
Try to use credit cards only for purchases you can afford to pay off. Cash payments are preferable. If you absolutely need to use a credit card, be prepared to pay off the balance at the end of the month or as soon as possible.
Don’t believe the hype of lawyers or other offices that promise they can immediately fix your credit score. 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. Check the reviews and reputation of any lawyer or credit repair firm thoroughly before you contact them and certainly before you give them any money.
Whenever you apply for and open a new credit account, your credit score may drop. It may be tempting to get a new account when there are bonuses offered at the check out, but you should stop and think about it first. Credit scores are adversely affected by opening a store credit card, because of their high interest rates.
This advice can help you to turn your credit score around. Just keep in mind that credit restoration is an ongoing process that you need to stay involved in. There’s no better time than now to start tackling your credit issues!
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