It can be stressful to deal with having bad credit. It is really bad if you have made bad choices in your past and they are still affecting you now. It is not easy to rebuild credit, but it is quite possible. Continue on for some helpful credit score repair tips.
If you have credit that is not high enough for you to obtain a new credit line, sign up for a secured card. These are extremely easy to qualify for. A secured credit card looks just like a regular card, and works like a regular card, but you have to have the necessary money in an account to guarantee payment. By using a new card responsibly, your credit rating will start to increase.
Pay down the balance on any credit card that is 50% or more of the credit limit. You should keep your balances under fifty percent; anything over this and you can lower your credit rating, so spread out the money you own and pay down your credit cards.
Interest Rates
If your creditors try to jack up your interest rates, do not pay them. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. Remember that you agreed to pay that interest when you signed the contract. Your interest rates should be regarded as too high if you plan on suing your creditors.
When trying to repair your credit, research any credit counselors you consider using very thoroughly. There are some legit counselors, and there are some that have ulterior motives. You’ll find that other ones are just scams. It is smart to verify the legitimacy of credit counselors prior to getting involved with them.
Don’t risk prison. There are many different places that claim they can help you get a new credit profile. This is illegal and you’ll get caught. The legal proceedings will be costly, and you may even be sent to jail.
You can contact your creditors and request a lower limit. This will prevent you from spending too much that you do not have. It will also show the credit companies how responsible you are, and if you do need to get more credit in the future, you will have a much easier time.
Before you decide to go through with a debt settlement, you should be sure you know how it will affect your credit. There are ways to go about this that will have less of an impact and should be learned about before you make any kind of deal with a creditor. They are just out to get their money and do not care how that effects your credit score.
If you find any errors on your credit report, you should dispute them. 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. Make sure that you ask for a return receipt so that you know your letter makes it to its intended destination.
Single Account
If you have bad credit, have your credit cards merged into one single account. It is important to make small payments or transfer a balance to the open account. This will let you focus on paying off a single account rather than many small ones.
Make sure to review your credit card statement monthly to make sure there are no errors. If this is the case, you need to call the company right away to avoid them from reporting it to credit reporting agencies.
Get a written copy of any payment plan you negotiate with a creditor. This will provide proof of your agreement in case any problems ever arise. Finally, when it is paid in full, get documentation thereof to submit to credit agencies.
You should keep a low balance on your credit cards to improve your credit rating. Your credit score can be raised if you lower your balances. When balances are and increments of twenty percent of your total available balance on that account, the FICO system will take note.
Credit Restoration
Look for a credit restoration company that has good reviews online and is legitimate. The credit restoration business has a lot of unfair and shady companies. Lots of people have been taken in by credit score repair schemes. 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.
You have a long way to go to get the credit score you want from the advice you got here. You do, of course, need to keep plugging away and pay your bills on time every month. Start working at rebuilding your credit!
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