You have most likely done damage to your credit, whether you got a card from friends, went on too many shopping trips or were hit by economic pressures. You are in luck, though. These tips will help you get your credit score to that mythical 850.
The higher your credit score, the lower the interest rate that you can obtain will be. This allows you to eliminate debt by making monthly payments more manageable. Obtaining the best possible interest rate saves you money, and helps you maintain your credit score.
If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates. You may be able to challenge an interest rate that is extremely high. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. Your interest rates should be regarded as too high if you plan on suing your creditors.
Any company or credit counselor that claims they can erase all negative reports from your credit history should be viewed with some skepticism. This information can stay on your record for about seven years. Incorrect information may be erased though.
Give your credit card company a call and ask them to lower your credit limit. This will prevent overextending yourself and lets the company know about your responsible borrowing habits. You could get credit easier in the future.
Before you agree to settle your debt, you need to know how your credit will stand afterwards. You should know all about the methods you can use if you are going to enter into an agreement with someone. Some are out there just to take your money; they don’t care about your rating.
If you are trying to repair your credit, check all of your negative reports very carefully. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
A first step in fixing your credit is to close all credit card accounts that are unnecessary. Aim to only have one account. Transferring multiple balances to one single card is a way to gain control of your finances. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.
Always get a plan in writing if you are going to do a payment plan that deals with creditors. This is a great way to have documentation of the plan if the creditor changes their mind or the company ownership gets changed. As soon as you get it paid off, have that in writing so you are able to inform the credit reporting agencies.
Try not to file bankruptcy if at all possible. This will show up on your credit for around 10 years. Bankruptcy may sound great because your debt goes away but there are consequences. By filing for bankruptcy, you might have a lot of trouble getting a credit card or qualifying for a loan in the future.
To fix damaged credit, pay off your credit card balances as fast as you can. It is a toss up as far as which cards are best to pay off first – some choose ones with the highest interest rate, others choose the card with the lowest balance. Beginning to pay your credit card balances off will show creditors that you are making a valiant effort and are credit worthy.
Doing so can help to keep good credit. Paying late is placed on your credit report which can hurt your chances of getting a loan.
Carefully read the small print on your statements. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. It is only your responsibility to make sure everything is correct and error free.
Make sure the credit improvement agency is reputable. There are plenty of credit repair agencies that don’t follow through with their promises. Many people fall victim to these scams every day. Be a smart consumer and educate yourself by researching user reviews online to find a good agency.
Try to avoid using credit cards. Stick to your budget by only spending the cash that you have allocated for spending. If you do pull out the credit card, pay off the debt in full each month.
Although it can seem daunting, you can get your credit on the mend by learning about it and taking the proper steps. Use what you’ve learned in this article to start fixing your credit and improve your credit score.