If Your Credit History Is Bad Then Follow This Advice
Posted at by CreditWiz on category Credit
When trying to deal with everything that revolves around having poor credit, this can cause a great deal of stress. It can prove to be very frustrating when you find yourself constantly haunted by your past and the poor decisions you made. It is time to take action and rebuild your credit score. Read on to find out how.
When you want to fix your credit, you need to start somewhere. Have a realistic plan and stay with it. If you want to change then you have to work hard and stick with it. Only the necessities can be purchased from here on in. Ask yourself how necessary each purchase is, and how affordable it is too. If you can’t answer “yes” to each of the questions above, you need to reconsider the purchase.
Secured Credit Card
If your credit history has put you in the position where you are not able to obtain a regular credit card, you should try to get a secured credit card to begin rebuilding your credit. 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. Using this new credit card in a responsible manner will help to build back up your good credit rating.
Your interest rate will be lower if you have a good credit score. It will lower your monthly payments, so your debt will be taken care of at a much quicker rate. It’s important to look for a strong credit offer with competitive rates; it will make paying off your debt and keeping a strong credit score much easier.
You need to work with the companies from whom you have credit cards. If you do this you’ll find that your debt doesn’t increase and your credit is improved. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Stay cautious and aware of scams online that can lead you to even bigger problems. There are less than honest entities that will show you how to make a brand new credit file. You will be prosecuted, it is against the law. The legal costs can cripple you, and there is a very good chance you will be sent to jail.
If you’re trying to fix your credit, be sure to check all your negative reports carefully. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. Contact the credit agency in writing, with documentation to support the errors that you are disputing. When you mail your dispute package, be sure to make arrangements for confirmation of receipt. In this way, you will have documentation that your information has been received.
Don’t spend more than you make. You may have to overhaul your entire mindset when it comes to money. In the not too distant past, credit was easy and people could stretch themselves too far, but now the economy is paying the price of those days. Review your budget and look at what you can spend each month without using more money than you have coming in.
Carefully check all charges on your monthly credit card statement for errors. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
Credit Score
Using the tips from this article will make a dramatic improvement towards your credit score. The main key is to commit to your plan of action and not allow your liabilities slip by. Stop worrying and start repairing your credit score now!