Has your poor credit been holding you back from getting the things you need? Millions of adults have experienced a severe drop in their credit score. Use some basic credit score improvement tips to bring your score up.
Develop a plan that works if you are in need of credit score improvement. Making changes to become a wise spender means you have to make a budget and rules, then follow them. Avoid buying what you don’t need. If you are buying something because you want it, and don’t need it, put it back on the shelf.
If your credit card has a balance of over 50% of your limit, it should be your number one priority to pay it off until the balance is under 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.
When you are trying to clear up your credit contact your credit companies. You should contact the company and request a lower interest rate or a due date change if necessary. Don’t be afraid to ask for alterations in interest rates or dates of payment.
Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Also include a request for a return receipt to make sure the agency gets it.
Credit Card
The first step in credit score repair is to close all but one of your credit accounts as soon as possible. Call your credit card company and try to work out a repayment plan, or transfer the balances of multiple cards to one lower interest card. Instead of paying several smaller credit card bills, you can work to pay off one credit card.
Try not to file bankruptcy if at all possible. Doing so will reflect upon your credit score and report for 10 years. Though it may seem necessary at the time, you should weigh the costs over the next ten years before you decide to go through with the filing. You may never get a line of credit for any purchases you might need to make if you go ahead, give up on repairing your credit and file for bankruptcy.
This is to keep your credit in good standing. Late payments are added to credit reports and they can damage your chances of getting loans or a home in the future.
Read every credit cart statement you receive in full. Errors are not as rare as you might think. Make sure that all of your fees and charges are correct and that there are not any items that were not authorized by you. You are the only person that is responsible for making sure the statements are error free.
Look for a trusted credit improvement agency to help you. Just like any other field, credit restoration has plenty of companies that do not provide what they promise. Some people have been victimized by scams that were supposed to help their credit. Check online reviews about the company, the Better Business Bureau, and even the State Attorney General’s office to find out what their reputation is before signing anything or giving them any money or account numbers.
Do not use your credit cards. Try to use cash when purchasing. If you have no choice but to use a credit card, always pay the balance in full each month.
Collection Agencies
One of the most stressful things about poor credit is dealing with debt collection agencies. You have the option of sending a cease and desist letter to agencies to stop them from calling, but that doesn’t mean that your debt vanishes. Even though these letters will stop the phone calls from collection agencies, the individual is still responsible for paying the disputed debt.
Be careful of paying for a service or a lawyer that advertises quick or instant credit score repair, many of them are dishonest. 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. Prior to contacting any lawyer for help fixing your credit, investigate him or her thoroughly.
A good way to repair your credit is to begin to build it back up. Prepaid credit cards make for a simple way to build up your credit, because there’s no risk of late payments or over drafting which can cause negative marks on your score. By doing this you will be proving to potential lenders you are credit worthy and capable of paying money when you are required.
If a poor credit rating has left you feeling discouraged, turn your situation around by applying the guidelines you have just read. This advice can make all the difference between having a bad or good credit score.
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