If you knew how much you owed and who you owed it to, you may have been able to avoided bad debt entirely. It’s now time to buckle down and fix your credit. The following information is quick, simple and can help repair your credit if followed correctly.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. If you let your balances get too high, your credit rating will drop significantly. You can either spread your debt out by transferring some of the balance to low interest cards, or better yet, pay off as much as you can.
Think about getting an installment account to save money and improve your credit score. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. If these accounts are properly managed, they can provide a quick boost to your credit score.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. Negative entries on your record stick around for a term of seven years at a minimum, even if you take care of the debts involved. It is true, however, that you can remove inaccurate information from your report, but you do not need the assistance of a consultant to do so.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. Pay these bills on time, and make sure you pay the full amounts owed. Once you have started to pay towards your past-due accounts, you credit score will gradually improve.
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. By doing this, you will keep your credit from getting worse by making sure that your debt does not increase. See if the company will allow you to modify the monthly due date, or reduce the payments.
Requesting that your credit card limits be lowered can benefit you. This will prevent you from spending too much that you do not have. It will also show the credit companies how responsible you are, and if you do need to get more credit in the future, you will have a much easier time.
Prior to agreeing to a debt settlement agreement, find out how that process is going to impact your credit score. Some ways of dealing with debt repayment are better for your credit score than others, so make sure you are achieving the best outcome for you before you sign anything. Many collectors just want to get paid and don’t care about credit consequences.
Make sure you review all of the negative marks against you on your credit report. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.
Credit unions are an option for those who have run out of options when trying to find a line of credit to boost their score. They might be able to provide you with several more options at better rates than banks, since they work locally as opposed to nationally.
If you see errors on your credit reports, dispute them with the credit agency. You should contact the credit bureaus both online and by certified letter; be sure to include proof of your claims. Also include a request for a return receipt to make sure the agency gets it.
Don’t spend more than you make. This may mean that you need to alter the way you have been thinking. Unfortunately, easy credit has lured many people into buying luxuries that they don’t need and cannot afford, which will always catch up with them. Be sure to assess your finances and find out the things that you can afford.
Make sure to review your credit card statement monthly to make sure there are no errors. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
Be certain to get any credit repayment plan in writing. This way you have documentation of the agreement in case the creditor decides to change their mind or ownership of the company changes. Once the debt is fully paid, you need to get a statement verifying this from the creditor and send it to each of the major credit bureaus.
As this article has spelled out, fixing your credit is not rocket science, and it may be easier to do than you think. You can reach your ultimate goal by choosing to follow the straightforward information from the article above.