Errors on your report make it much harder for you to maintain high credit. The best approach to credit improvement is one in which you perform the credit restoration process steps yourself. Read this article for the best ways to fix your credit.
The first step to repairing your ailing credit is to create a manageable, feasible financial plan. You must make a commitment to making changes on how you spend money. Purchase nothing but the essentials. Before making any purchase, determine if it is within your means and if it is indispensable. Don’t buy the item unless you answer “yes” to both of these questions.
If you want to boost your credit score and earn a decent living, open an installment account. Choose an installment account you can afford, since you will have to leave a certain amount of money on it at all times. Keeping an installment account will help your credit score.
Interest Rates
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. However, when you signed up for the line of credit you also agreed to pay the interest. It is likely you can have exorbitant interest rates reduced if you sue the creditor.
When you’re looking to fix your credit, be cautious of credit improvement companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Negative info stays on your history for seven years! It is possible to have erroneous information removed from your report, however.
Credit Counselors
You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. While many counselors are reputable and exist to offer real help, some do have ulterior motives. Others are outright scams. To help protect yourself from fraud, investigate any credit counselors. One way to check an agency out is to check with the Better Business Bureau.
Officially dispute any errors you find on your credit reports. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Make sure when you send the dispute package that you request proof by signature that it was received.
Take a look at credit card bills to make sure that every item is one you have charged. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms 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. If you have finished paying it off, you should request a confirmation so you can send it to the credit reporting agencies.
Avoid filing for bankruptcy. It can adversely affect your credit for up to 10 years. It sounds very appealing to clear out your debt but in the long run you’re just hurting yourself. Filing bankruptcy makes it difficult if not impossible to get anything involving credit, like credit cards and loans, in the future.
When you receive your credit card statement, go over it carefully. Always check to make sure that you are being charged correctly, and not being double charged or charged for items that you did not buy. You must be accountable for each item on your statement.
Debt collectors hounding you can be very stressful. Remember that when dealing with harassing collection agencies, consumers have the option to issue a cease and desist letter to stop the harassment. This doesn’t let the customer off the hook for the debt, it merely stops the threatening calls.
Repair your credit by building it up again. Prepaid credit cards can help you demonstrate responsible use of credit without having to worry about missing payments or late fees. Potential lenders will see this as a positive thing as it will show you are a responsible person.
Past Due
Work out a plan of attack where you can pay off collectors and any other accounts that are past due. These will remain on the credit report, but will be reported as paid. This is better than having past due debt.
Be sure to document all information if a collector threatens you; this is not legal. There are laws that protect consumers, and it is important to know them.
If you’re having trouble with creating, or living within, a budget, consult a highly regarded consumer credit counseling agency. These organizations can help you by negotiating with creditors to resolve a payment plan. Credit counselors will also be able to help you understand where you are going wrong financially to stop the same mistakes happening in the future.
As shown here, you can do a number of things to help repair your credit and get back on solid footing again. Try implementing just a few of these tips, and see how your credit score rises as a result. You can fix your credit by yourself, and you will win in the long run.
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