Credit Score Repair Made Easy With These Simple Instructions!
Posted at by CreditWiz on category Credit
It’s no surprise that there are so many people facing the hardships of bad credit today given the current state of the economy, yet don’t become discouraged because of this. Fortunately, these tips and tricks will provide useful insight into ways that you can work toward a healthier credit score.
Keep your credit card balances below 50 percent of your credit limit. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.
Credit Rating
To improve your credit rating, set up an installment account. Open an installment account that you can pay for and make sure to keep an affordable monthly minimum on it. You can improve your credit rating quicker using this type of account.
It is essential to pay all of your bills if you are looking to repair your credit. You should always make an effort to pay your bills on time and in full. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
Stay in touch with credit card companies if you wish to repair your score. Maintaining contact shows your good faith and can help you minimize further debt. Some of your options include negotiating for a later due date, and asking for reductions in your minimum monthly payments.
Take a look at credit card bills to make sure that every item is one you have charged. If you spot any late fees, immediately contact your credit card company. This can save you from having late payments reported to the credit reporting agencies.
Do everything possible to avoid bankruptcy. Doing so will reflect upon your credit score and report for 10 years. Bankruptcy may sound great because your debt goes away but there are consequences. If you have filed for bankruptcy in the past, it can be near impossible to obtain a loan.
To even begin improving your credit you will need to lower the balance owed on them as soon as possible. Pay down credit cards that have the highest amount owed, or the highest interest rates. Beginning to pay your credit card balances off will show creditors that you are making a valiant effort and are credit worthy.
Comb through all of the bills that you get! Make sure the charges on your credit cards are accurate. You need to be sure that everything is correct on the statements.
You may want to argue against the reports, but potential lenders will not take your statements into consideration. The action of making a statement about your negative history will work against you as it highlight your mistakes rather than downplaying them.
Collection Agencies
The worst part of a credit crisis may be the collection agencies. You can submit a cease and desist statement to a creditor to stop harassment. These letters stop collection agencies that harassing debtors, but they don’t erase liability for the debt itself.
Don’t believe the hype of lawyers or other offices that promise they can immediately fix your credit score. Because so many people are experiencing credit problems due to the economy, shady lawyers that advertise useless, possibly illegal credit score improvement services have appeared. Do the research on your lawyer before you call them.
One of the best ways to begin repairing credit is to start re-establishing it. If you use a credit card that is prepaid you can build up your credit and not have any bad credit reports. Potential lenders will see that you are working towards becoming more responsible with your credit.
You should record any threats you get from collections agents. Consumers have protection laws that are crucial to be aware of.
Credit Score
Now you know how to repair your credit score, so get started on a plan of action. Do not allow your credit score to dictate the way you are able to live your life. You can use the techniques that have been provided to improve your credit score and live a more fulfilled life.