What You Must Know About Repairing Your Credit
Posted at by CreditWiz on category Credit
Has your poor credit been giving you a hard time? There are millions of people who have seen their credit score go down in today’s rough economic climate. Fortunately, there are many things you can do to help improve your credit again, and your first step is as easy as reading this article.
Regular Card
If you are unable to get a new card because of your bad credit, try to apply for secured cards. These are extremely easy to qualify for. A secured credit card looks just like a regular card, and works like a regular card, but you have to have the necessary money in an account to guarantee payment. If you show a good history of payments with this card, it will help improve your credit standing.
If someone promises you to improve your score by changing your factual history, this is a scam. You have to wait for seven years before negative data can come off your record. If there is incorrect, negative information, you can get it removed.
Be very wary of programs that do not sound legal; chances are they aren’t. Scams abound on the internet that show you how to change your credit file. This is illegal and you’ll get caught. You may end up in jail if you are not careful.
Credit Card
Contact the credit card issuer with a request to lower your card’s limit. Not only will this stop you from overspending, it will indicate responsible behavior to a credit card company, and may enable you to get future credit.
The first step in repairing your credit involves a thorough and careful check to ensure your credit report doesn’t contain erroneous information. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.
Joining a credit union is a great way to build your credit if you are having a difficult time doing so elsewhere. Credit unions are normally located in communities and offer lower interest rates than national banks.
Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. 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.
Credit Card
A first step in fixing your credit is to close all credit card accounts that are unnecessary. Aim to only have one account. Transfer credit card balances to one card for loan consolidation. It will be easier for you to make payments on a single credit card account, as opposed to several.
Check over your credit bill each month to make sure there are no errors. You must get in touch with your credit card issuer as soon as you spot an error to make sure that it is properly handled and does not result in any negative reporting.
Doing this will ensure a good credit score. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
Read every credit cart statement you receive in full. Errors are not as rare as you might think. Look for any changes that have happened, and make sure they are correct. You do not want to end up paying for a purchase that you did not make. The responsibility lies with you to verify that each charge is accurate.
Debt Collectors
Debt collectors hounding you can be very stressful. The consumer can use cease and desist orders, but these only stop harassment. Remember, even when the debt collectors stop annoying you by phone, your obligation to pay what you owe is not alleviated.
If you felt bad about your credit score, use these strategies to change that. These tips are a parachute for your plummeting credit score.