Repairing Your Credit: It’s Not That Difficult!
Posted at by CreditWiz on category Credit
There are many reasons why you may have a poor credit history. Credit cards could have been your primary means of support while you were gaining an education, a passion for shopping may have gotten the best of you or the decline in the economy might have left you jobless for a time. You can turn things positive on your credit report by starting with these steps.
If you are unable to get an unsecured credit card due to your low credit rating, consider a secured card to help reestablish your rating. Anyone can get one, but you must load money onto the card as a type of “collateral”. A new credit card, used responsibly, will help repair your credit rating.
You can reduce your interest rate by maintaining a high credit score. By doing this your monthly payments will be easier to afford and your bill will be paid off faster. Try to get the best offer and credit rates so you can increase your credit score.
As you work toward repairing your credit score, you should be willing to cooperate and work with your creditors. This will assure them that you want to handle your debt and keep you from getting even further behind. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
When trying to repair your credit, research any credit counselors you consider using very thoroughly. Although some can be quite legitimate, others have motives that are less than kind. Others are just plain fraudulent. Before you conduct any business with a credit counselor, check into their legitimacy.
Call and request lower limits on your cards from the credit card companies. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
Credit Score
Before you agree to any sort of repayment plan to settle your debts, consider how this will affect your credit score. Some settlement agreements can actually be bad for your credit score, so be wary and do your homework. Remember creditors want their money. They really don’t care about your credit scores. That is up to you to protect.
When looking over your credit report, look closely at the negative report that are listed. You could find mistakes in dates and other factors which can cause the whole item to be removed from the report.
Doing this will ensure that you keep a solid 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.
Lower the debt on revolving credit accounts, like store and credit cards, first. Reducing the amount of debt you’re carrying is one of the best ways to improve your credit score. The FICO system has a new level for every twenty percentage points of your credit available.
If you are determined and ready to learn, you can fix your credit in no time. Use what you have read here to get back on track with your credit.