Poor credit is a terrible thing for you to deal with as you journey through life. Bad credit makes it difficult to take advantage of any financial opportunities that arise. But, you can fix your credit in a few simple steps and protect it for the future.
If you need to repair your credit, the first step is to come up with a workable plan and stick to it. You have to be committed to making real changes to your spending habits. Don’t buy anything unless you absolutely need it. Put each potential purchase to the test: is it within your means and is it something that you really need?
Credit Limit
If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.
For a credit score boost, an installment account will help. Make sure you can afford to make the payments and try to maintain a minimum monthly balance. Paying on time and maintaining a balance will help improve your credit score.
No credit score improvement company can remove factual information, no matter how damaging, from your credit report. Sadly, harmful entries remain on your report for roughly seven years. Know, however, that it is possible to delete information that is actually wrong.
Do not do anything that will make you end up in jail. You should steer clear of internet programs that show you how to clear your credit. That is illegal and you are going to be caught. You could go to jail if you have a lot of legal issues.
Make sure to have as low as possible of a credit line available to you. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Draft a letter to reporting agencies disputing negative entries and also submit any available documentation. 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.
Credit Card
It will be easier to increase your credit rating if you only have one open credit card account. Transfer credit card balances to one card for loan consolidation. Paying off one main credit card will be easier than paying off several cheaper ones.
The most obvious way to get your credit repair journey going is to pay down those pesky credit card balances. Begin by paying down those credit cards that carry the highest interest rates or the highest balances. This action will show creditors that you are being responsible with credit.
Read every credit cart statement you receive in full. Errors are not as rare as you might think. You want to double check that all the charges are accurate, and that you are not paying for something you did not purchase. It is solely your responsibility to be sure that everything is correct.
Although they mean a lot to you, these statements are often set aside when lenders go over your credit history. Trying to defend bad credit may actually draw their attention to the area and cause more problems than it would have originally.
Credit card usage should be eliminated. Pay for things with cash whenever possible. If you do use a credit card, pay the full balance each month.
Unfortunately, sometimes you have more debts than you have money to pay them off. Take out a little money for each one of the creditors that you owe. Even if you can barely meet the minimum payments, every bit that you send can help keep your creditors happy, making them less likely to contact debt collectors.
Create a plan in order to pay back your debts. These accounts will still appear on the credit report, but will be showed as paid. This shows future creditors that you made good on your debt.
A few easy steps, like the ones here, can help you repair your problems with credit and help you to maintain a healthy credit score. The time you invest educating yourself regarding credit repair is worth every minute.
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