Do you have such poor credit that you have trouble sleeping? By following the tips in this article you can get things back on track, and finally have a credit score that makes you proud.
Make sure that you are never using more than 50% of your credit card’s limit. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.
Credit Score
When you have a good credit rating, you will be able to easily get a mortgage loan. You can improve your credit by paying your mortgage on time. Owning your own home gives you a significant asset to use in securing your finances, and your credit score will reflect that asset. Having a good credit score is important if you need to take out a loan.
An installment account is a great way to increase your credit score. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. If you are able to keep up with one of the accounts, you should see your credit score improving quickly.
Interest Rate
If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. On the other hand, you’re likely bound by a contractual agreement to pay any interest charged by lenders. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
Before using a credit counselor, it’s important to research them completely. While many counselors are reputable and exist to offer real help, some do have ulterior motives. Some are simply fraudulent and are out to get your money. It is wise for consumers to not give out personal information unless they are absolutely sure that the company is legit.
Credit Score
Find out how your debt settlement contract will make your credit score look. Research all of your options, make an informed decision about the method you chose, and only then should you agree to the settlement. The credit companies are looking at their own bottom line and are not concerned with your credit score.
Sign up with a credit union if you need to get a new credit line and are having a hard time. Local credit unions might have different credit products than national banks, because they can focus on local market conditions.
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.
Many times you and your creditor can work together to come up with a prepayment plan. If so, be sure you get a written agreement stating the terms. 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. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
Do not file for bankruptcy if you do not have to. It can adversely affect your credit for up to 10 years. This may appear to be a wonderful idea where you rid yourself from all this debt at once, but in actuality it causes more harm than good. If you have filed for bankruptcy in the past, it can be near impossible to obtain a loan.
Pay off any balances as soon as you can. First work on the cards with the steepest balances or interest rates. Doing so shows your lenders that you are responsible.
If you are having a lot of trouble with your credit, consider locking up your credit cards for a while. Pay for things with cash whenever possible. If you have no choice but to use a credit card, always pay the balance in full each month.
Avoid using a law office that claims they can fix your credit. Some lawyers have chosen to take advantage of the people who have bad credit by charging a lot of money for things that are useless to their credit or are illegal. Do your research before calling any lawyer for their help.
As you have read, a bad credit report doesn’t have to give you nightmares. You don’t have to be afraid of your credit score; you can improve it. You can have a dream worthy credit score by following a few simple steps shared in this article.
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