You can feel like the bad guy if you have bad credit. The circumstances that lead to bad credit are rarely ones you want to look back on fondly, but a low credit score provides a constant, irritating reminder. Fortunately, there are some things you can take action on right now to raise your credit score, so read on and get ready to regain control of your credit.
Creating a payment plan and sticking with it is just the first step to getting your credit on the road to repair. Make a commitment to making better financial decisions. Don’t buy the things that aren’t needs. Ask yourself whether every purchase is both affordable and necessary, and only buy if the answer to both questions is “yes”.
Credit Card
If your credit history has put you in the position where you are not able to obtain a regular credit card, you should try to get a secured credit card to begin rebuilding your credit. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. Even though this card will be secured by your own money, you will make payments and manage it as if it were unsecured. This will improve your credit as you show yourself able to make the payments on time.
You will be able to get a lower interest rate if you keep your personal credit score low. Lower interest rates mean lower payments, which allows you to pay off debt faster. Compare offers and choose the best interest rate you can find when borrowing money or subscribing to a credit card.
If you credit score is good, you should have no problem purchasing a house and obtaining a mortgage. Making your mortgage payment on time each month will also boost your credit score. Owning a home shows financial stability, which is great for your credit. This is helpful in case you want to borrow money.
You can lower your debt by refusing to acknowledge the part of your debt that has been accrued by significantly high interest rates. An interest rate that is shockingly high can possibly be ruled as illegal in certain cases. However, when you signed up for the line of credit you also agreed to pay the interest. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. These bad marks stay on your record for seven years or more. It is possible to have erroneous information removed from your report, however.
Due Date
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. You should contact the company and request a lower interest rate or a due date change if necessary. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Do not get mixed up in things that may lead you to imprisonment. There are less than honest entities that will show you how to make a brand new credit file. This is illegal and you will eventually be caught. The legal consequences are expensive, and you might be sentenced to jail.
Anything on your credit report that you feel is inaccurate should be disputed. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Send any correspondence by recorded mail to ensure proof of receipt by the agency.
One excellent way to get your credit score back up is to close all your credit cards except for one. 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. You will be able to pay one bill instead of a plethora of small ones.
If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. You want documentation to back yourself up so there will be no problems in the future, and if the company owner changes you will have more of a chance of keeping your plan. After you have paid off your debt, send proof of this to the major credit agencies.
Take the time to carefully go over all your credit card statements. Make sure the charges on your credit cards are accurate. If an error occurs, you should immediately notify your creditor.
Credit Restoration
Look for a trusted credit restoration agency to help you. There are far too many of these companies that are quite simply fraudulent. It is sad to see how many people have been taken advantage of by credit restoration scams. Read reviews online to help you choose the right agency for you.
Credit cards should be avoided. Do all of your spending with cash or debit cards. When you find credit card spending unavoidable, pay down your balance immediately.
Collection Agency
Having to deal with a collection agency can be extremely stressful. If a debt collection agency is harassing you, writing a cease and desist letter can stop the harassment. The consumer still has to pay disputed debts even though these letters stop agencies from calling.
If you have suffered job losses due to the economy, you may not have the cash to pay all the debts you owe. Try to make sure that you find a little bit of money in your budget for all the creditors you owe payments to. Paying at least minimum payments prevents creditors from calling collection agencies.
Carrying a low credit score can make you feel negative toward many aspects of your life. Use the advice provided here and you soon will be making a change in your credit.
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