Bad credit is a particularly troublesome life problem that can haunt you for years. It can take take away choices and stop you from enjoying wonderful opportunities. You can repair it though, and make steps to prevent it from spiraling down further.
If you have credit that is not high enough for you to obtain a new credit line, sign up for a secured card. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. If you utilize a credit card responsibly, it can aid in the repair of your credit rating.
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.
Installment Account
For a credit score boost, an installment account will help. An installment account requires a monthly payment, make sure you can afford it. You can improve your credit rating quicker using this type of account.
Give your credit card company a call and ask them to lower the limit on your credit card. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.
Take a look at your credit report if you have a bad score. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
Credit Card
Taking time to examine your monthly credit card bill is critical to ensure that there are no errors. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
Pay off your entire balance on your credit card in order to repair your credit. Pay down credit cards that have the highest amount owed, or the highest interest rates. Creditors will see this action as a sign that you are responsible and educated.
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 need to be sure that everything is correct on the statements.
There are many credit score improvement agencies advertised; you must check with places like the Better Business Bureau to make sure that you deal with a reputable one. The industry unfortunately has some agencies that fall short on their credit improvement promises. Some people have been victimized by scams that were supposed to help their credit. Reading unbiased customer reviews will help you decide what company you want to work with.
It is obviously somewhat difficult to let derogatory marks stand undefended, but the evidence suggests most lenders don’t use those statements in determining creditworthiness. If anything, it will just hurt you as it will draw attention to the negative event.
Collection Agencies
The worst part of a credit crisis may be the collection agencies. Debtors can stop harassment by collection agencies with cease and desist notices, but know that this is all they do. This doesn’t let the customer off the hook for the debt, it merely stops the threatening calls.
Be wary of any company that tells you they can instantly fix your credit. Since there so many people struggling with their credit today, there are a lot of businesses that have popped up to take advantage of the situation. Make sure any credit score repair service you consider has a positive standing with the BBB.
If you apply these tips, you should be able to improve your credit and maintain a good score. Because a good credit rating is important in so many financial transactions, the time you spend learning about credit improvement is well-spent.