If your credit report contains inaccurate information then it will negatively affect your credit score, making it difficult to get any lenders to work with you. There are a few ways to fix inaccuracies and/or blemishes on your credit report. Continue reading and we’ll provide you with some valuable advice.
Creating a payment plan and sticking with it is just the first step to getting your credit on the road to repair. Making changes to become a wise spender means you have to make a budget and rules, then follow them. Purchase nothing but the essentials. Look at your purchases closely. If you cannot afford something, and you do not need it, do not buy it.
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 your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. 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. Remember that you agreed to pay that interest when you signed the contract. 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.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. Negative credit information remains on your record for up to seven years. It is possible to have erroneous information removed from your report, however.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. More specifically, pay them on time and in full. Your credit rating will quickly rise as you settle up your overdue bills.
If you are doing hardcore credit restoration, you need to scrutinize your report for negative entries. While the credit item itself may not be in error, if you can find a mistake in the date, amount, or any other factor, you may be able to have the whole item removed from your report.
If you find any errors on your credit reports, 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. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.
One excellent way to get your credit score back up is to close all your credit cards except for one. Call your credit card company and try to work out a repayment plan, or transfer the balances of multiple cards to one lower interest card. Paying off one main credit card will be easier than paying off several cheaper ones.
Avoid filing for bankruptcy. Bankruptcy can make getting credit almost impossible for many years. It may seem like the right things to do, but your future will be affected. Filing for bankruptcy will make it very difficult for you to qualify for credit in the future.
Begin the process of credit improvement by trying to pay down your credit card balances as fast as you can. Pay off high-interest debt first, as it grows the fastest. By doing this, you will show your creditors that you are trustworthy with your credit.
This is one of the quickest way to create and maintain a credible financial record. Late payments are added to credit reports and they can damage your chances of getting loans or a home in the future.
Debt collectors can be like sharks. You have the option of sending a cease and desist letter to agencies to stop them from calling, but that doesn’t mean that your debt vanishes. A letter like this may stop a collection agency from harassing you, but you are still on the hook to pay your debts.
Be very careful about credit professionals who state that they could fix your credit quickly. Because so many people are having credit problems, predatory attorneys have appeared who charge exorbitant fees for useless or illegal credit repair schemes. Do a thorough background check on any lawyer advertising credit score repair services before handing over any money.
Start using credit again in order to repair damage caused by previous negative activity. Consider a card that requires payment in advance; this will improve your score without the risk of failure. A potential lender will see this as a responsible move on your part, showing that you are credit worthy.
As shown here, you can do a number of things to help repair your credit and get back on solid footing again. Using the tips in this article will help boost your credit score. A better credit score is within your reach.