You need not suffer the effects of bad credit, no matter how you wound up with credit problems. Whether you have been personally damaged by economic conditions, victimized by dishonest lenders or even were simply too carefree in your spending, you deserve better credit. There are some things you can do to turn your credit around.
There are secured credit cards available if your credit rating is too low to open up a regular credit card account. Most people are able to get this type of card, but you will have to load it up with a prepaid amount of money, as a guarantee that you can pay any charges that you make. By using a new card responsibly, your credit rating will start to increase.
Installment Account
Getting an installment account can help you earn money and provide a boost to your credit. Make sure that you are able to afford the payments on any installment accounts that you open. You might see a big improvement in your credit score, if you can handle an installment account responsibly.
In order to start repairing your credit, you need to start paying your bills. Pay these bills on time, and make sure you pay the full amounts owed. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
Don’t attempt to fix your credit in a way that will result in you breaking any laws. You should steer clear of internet programs that show you how to clear your credit. This is illegal and you will most certainly get caught. You could end up owing a great deal of money or even facing jail time.
Credit Card
Give your credit card company a call and ask them to lower your credit limit. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
Dispute any errors that are on your credit report so they are removed. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
Start living within your means. You will need to change the way you think. In the last decade, it has been way to easy for people to get credit. Many people have used this credit to buy items that they really could not afford at the time, and are now paying the price. You should look at what you can afford to spend, before using credit for purchases.
Check your credit card carefully each month to ensure that there’s no incorrect information. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
Any time you establish any payment plan with any creditor, make sure you get it in writing. This provides you with documentation that an agreement is in place in case the company changes hands or the creditor tries to change the terms of the agreement. Once it is paid off, you should get that in writing to send to the credit reporting agencies.
To fix damaged credit, pay off your credit card balances as fast as you can. You should first work on paying down the credit cards with the highest balance or interest rates. This can prove to creditors that you are serious about paying down your debt.
Do not carry high balances on any of your credit accounts. You can up your credit rating just by paying down your balances. Increments of twenty of available credit are noted by fico.
Do not use your credit cards. Use cash to pay for things whenever possible. If a credit card is used for a purchase, pay the entire balance when the bill arrives.
Collection Agencies
Debt collection agencies are the most difficult part in having bad credit. Cease and desist instructions can be used to ward off debt collectors to a point, but only really to prevent harassment. While such letters stop collection agencies from calling, the consumer is still obligated to pay the debts being disputed.
Do not assume that a lawyer is being honest when he or she claims that they can fix your credit instantly. Because so many people are having credit problems, predatory attorneys have appeared who charge exorbitant fees for useless or illegal credit restoration schemes. Make sure any credit score repair service you consider has a positive standing with the BBB.
At first, it may seem impossible to repair your damaged credit. However, with some effort and the right advice, you can start to improve your credit rating and eventually regain a credit score that will instill faith in any lender. Take the advice that has been provided in this article to start making positive steps toward better credit.