How To Recover From A Poor Credit History
Posted at by CreditWiz on category CreditIf your credit report contains inaccurate information then it will negatively affect your credit score, making it difficult to get any lenders to work with you. The most economical way to fix your credit is to do it yourself. Read on to find out how you can fix your credit.
If you have credit that is not high enough for you to obtain a new credit line, sign up for a secured card. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. A new credit card, used responsibly, will help repair your credit rating.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
If you want to boost your credit score and earn a decent living, open an installment account. You are required to meet a monthly minimum, so be sure that you can make the payments. You can quickly improve your score by successfully managing these accounts.
Negative Information
When you’re looking to fix your credit, be cautious of credit score repair companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Unfortunately, this negative information stays on your credit record for at least seven years. However, if there is incorrect information, you can have it cleared up easily by yourself.
Paying your bills is something you need to do to repair your credit. More importantly, you need to start paying your bills in full and on time. This will improve your credit score. The score rises as soon as you start making some headway on your overdue bills.
Do not do things which could cause you to go to jail. Don’t buy into scams that suggest you create new credit files. Do things like this can get you into big trouble with the law. You could go to jail if you have a lot of legal issues.
Prior to agreeing to a debt settlement agreement, find out how that process is going to impact your credit score. There are ways to go about this that will have less of an impact and should be learned about before you make any kind of deal with a creditor. Creditors just want their money and really aren’t interested on how it will affect your score.
Credit Unions
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. Credit unions focus more on the local situation instead of the national one, and may provide more options or rates that are more favorable than those of a larger bank.
Officially dispute any errors you find on your credit reports. Write a dispute letter to any agencies with recorded errors, and include supporting documents. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
As discussed here, there are a variety of ways to improve your credit. Try implementing just a few of these tips, and see how your credit score rises as a result. Repairing your credit yourself is possible and is a good way to get your life back on track.