Has bad credit made your life miserable? A lot of people’s credit scores are going down in this economy. The following tips can help make that score better.
Fixing credit reports must begin with a solid working plan that you are capable of adhering to. You must be committed to making real changes in the way you spend money. Just buy what you need, and forget unnecessary purchases. Put each potential purchase to the test: is it within your means and is it something that you really need?
Try to keep a balance of less than 50% of your available credit on all of your cards. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
Installment Account
Try opening an installment account. You need to review the terms of an installment account carefully, because you’ll be required to maintain a certain monthly minimum. Handling an installment account correctly will help you improve your credit score in a short period of time.
Paying your bills is something you need to do to repair your credit. It is key that you pay them on time and in full. Do the best that you can. Once you start paying your past bills off, you will notice an immediate improvement in your credit.
Stay in touch with credit card companies if you wish to repair your score. You should contact the company and request a lower interest rate or a due date change if necessary. Talk to your credit card company about changing the terms of your monthly payment.
Don’t get involved in anything that could get you arrested. There are plenty of credit scams that purport to erase your existing credit file and create a new one. Of course, this highly illegal, and it will cause you even more problems, because it will not go unnoticed. In addition to the possibility of facing jail time, you could be fined, your attorney bills may be substantial, and your reputation could be ruined.
Give the credit card companies a call and find out if they will lower your credit limit. This will prevent overextending yourself and lets the company know about your responsible borrowing habits. You could get credit easier in the future.
If you find any errors on your credit reports, dispute them. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. 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
To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. Check to be sure that you actually purchased the things that are listed on your statement, so that you are only paying for things you bought. It’s up to you to make sure that every item on your bill is correct and dispute those that are not.
Lenders are not likely to include the statement in their decision process. There is also the possibility that it will just draw attention to that negative event instead of it being overlooked.
Try to use credit cards only for purchases you can afford to pay off. Use cash to pay for things whenever possible. If you have a situation where you have to put a charge on your credit card, make a point to pay it off as soon as possible.
Collection Agencies
One of the most stressful things about poor credit is dealing with debt collection agencies. Debtors can stop harassment by collection agencies with cease and desist notices, but know that this is all they do. Sending the letter does not mean you no longer have to pay the bill, it only stops the collection agency from calling.
Part of a nasty credit crunch is having multiple debts that you do not have the money to pay. Try to divide all your available money between your creditors, so you can pay everyone at least something. Making the minimum payments will, at least, avoid ending up with collection agencies.
Repairing your credit isn’t something you can do overnight, but the best way to fix it is to slowly raise it back up. Because it does not carry the risk of late payments that would hurt your credit score, getting a credit card that is prepaid will give you a very safe way to employ credit. This shows lenders that making payments is a priority for you, and that they should lend to you.
Credit Score
Every time you open a new line of credit your credit score is going to suffer. Avoid obtaining checkout credit cards that offer huge discounts. If you fall for the temptation, your credit score will drop when opening that new card.
If a credit collection agency or credit card company threatens you in a way that goes beyond the law, make a note of it. You need to know what the laws are that protect your rights as a consumer.
If you have a hard time making your regular monthly payments, talk to your creditors. Creditors are often willing to work with you on a payment plan that does not negatively impact your credit report when you take the time to call them. This can also help to relieve some of the financial strain that you have been facing.
Credit Score
You can use the following advice to improve your credit score. Stop your credit score from spiraling downward, and look for ways to get back on track.