Bad credit affects every financial transaction you make. You have doubtless experienced the downside of a low credit score. There are millions of people who have seen their credit score go down in today’s rough economic climate. Luckily, there are ways to improve it, and you can start right now by having a look at these credit score repair tips.
If you’re credit needs some work, first you should make a plan you can stick with, and then follow through. You must be committed to making real changes in the way you spend money. Only purchase something if you cannot live without it. If the thing you’re looking at is not both necessary and within your budget, then put it back on the shelf and walk away.
If you are unable to get a new card because of your bad credit, try to apply for secured cards. You are more likely to be approved for this type of card because, once funded, the banks feels secure that you will pay them back. Limited spending and regular payments can turn a new credit account into a valuable credit score improvement tool.
Make sure that you are never using more than 50% of your credit card’s limit. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
Some sound advice to follow, is to be sure to take the time to contact your credit card company and work with them. By doing this, you will keep your credit from getting worse by making sure that your debt does not increase. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Before you choose a credit counseling agency, find out more about them. Although some can be quite legitimate, others have motives that are less than kind. Other programs, while they sound good, are complete and total scams. You should always find out if a credit counselor is the real thing.
Credit Card Companies
Give the credit card companies a call and find out if they will lower your credit limit. It will keep you from overextending yourself financially, it sends a great signal to the credit card companies that you are a responsible borrower, and you will have an easier time getting credit in the future.
Prior to agreeing to a debt settlement agreement, find out how that process is going to impact your credit score. Some debt settlements are better than others. Do your homework and find out how your score will be impacted before agreeing to anything. Most of the time they want their money and don’t care about your credit score.
Dispute any errors that you find on any of your credit reports. Include proof along with a letter disputing the claim to the agency that recorded the errors. Use a return receipt when you mail your package so that you can prove that the agency received it.
Go over your monthly credit card statements to check for mistakes. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
Make sure you will get a plan in writing if you decide a payment plan is the best option for you with your creditor. This will give you important documentation in case of an ownership change or if the creditor tries to back out of the agreement. When the debt is eventually paid or settled in full, you should request documentation of this and forward copies to the primary credit reporting companies.
The most obvious way to get your credit repair journey going is to pay down those pesky credit card balances. Pay down credit cards that have the highest amount owed, or the highest interest rates. By doing this, you will show your creditors that you are trustworthy with your credit.
Take the time to carefully go over your monthly credit card statement. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. You bear the responsibility for looking after your own best interests, and you are the only person who will know if your statement is accurate.
For a better credit rating, lower the balances on your revolving accounts. Your credit score can be raised just by reducing your balances. The FICO system notes when balances are at 100, 80, 60, 40 and 20 percent of your total credit available.
You should record any threats you get from collections agents. You should be aware of the laws that safeguard consumers’ rights when dealing with debt collectors.
If you are having trouble creating or maintaining a budget, discuss your situation with a credit counseling service. Often, these organizations can work with your creditors to work out an appropriate repayment plan and can help you focus on improving your finances over time. Credit counseling can give you the tools you need in order to keep track of your finances and stay out of debt in the future.
Paying your bills on time is a crucial part of your credit score. Make use of payment reminders to help you remember to make your payments on time. There are many different ways to set up reminders. You can set it up through online banking, a calendar or an email reminder.
If your poor credit score frustrates you, try using these tips to change it. The advice from this article can help you turn around your credit situation and come out ahead.