Poor credit is a terrible thing for you to deal with as you journey through life. It can cause you to miss some great opportunities and take away some financial options. However, a few simple steps can be taken back in the direction of a good score.
A secured credit card might be a good option for the person with a poor credit score. The account is funded in advance, which provides the lender with a level of insurance against unpaid debts. This is why secured cards are often easier to get. Responsible use of a credit card can help rebuild your credit.
Try opening an installment account. It is necessary to at least pay the minimum, so insure the account is something that you can pay. You will improve your credit score by properly managing an installment account.
Interest Rates
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. Your initial agreement likely included a commitment to pay interest. The only way you are legally able to sue the creditors is if you are able to prove that your interest rates are much too high.
Credit repair requires that you begin paying your bills. Pay these bills on time, and make sure you pay the full amounts owed. Your credit score starts to improve immediately upon paying off some of your past due bills.
Working closely with the credit card companies can ensure proper credit restoration. Avoid collection to improve your credit score. See if the company will allow you to modify the monthly due date, or reduce the payments.
Do not try something that you do not know is legal or illegal. Don’t buy into scams that suggest you create new credit files. Of course, this highly illegal, and it will cause you even more problems, because it will not go unnoticed. The legal costs can cripple you, and there is a very good chance you will be sent to jail.
Check any negative items on your reports carefully when you begin fixing your credit. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.
If you are attempting to raise your score with the credit bureaus, but are encountering road blocks whenever you apply for new credit, then open an account with a credit union. They might be able to provide you with several more options at better rates than banks, since they work locally as opposed to nationally.
Credit Reporting
If you notice credit reporting errors, always file a dispute. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Send any correspondence by recorded mail to ensure proof of receipt by the agency.
It will be easier to increase your credit rating if you only have one open credit card account. Transfer credit card balances to one card for loan consolidation. You will be able to pay one bill instead of a plethora of small ones.
If you work out a payment plan with a creditor, you should make sure to get the plan in writing. This is a great way to have documentation of the plan if the creditor changes their mind or the company ownership gets changed. When you pay it off, send a written copy of proof of payment to all three credit reporting agencies.
Following these simple tips can help you get on the road to repairing your credit and keeping it healthy. It is always worth your time learning how to fix and maintain good credit, since it has a major impact on most of the larger financial deals you will make.
This is a limited-time offer. We are not able to guarantee availability if you wait!
