Is Your Credit Score Bad? Follow These Tips To Get The Score You Need!
Posted at by CreditWiz on category CreditWith the current state of the country’s economic status, it is no big surprise that there are so many people that are facing negative credit scores. Fortunately, these tips and tricks will provide useful insight into ways that you can work toward a healthier credit score.
When you want to fix your credit, you need to start somewhere. Have a realistic plan and stay with it. You must be committed to making real changes in the way you spend money. Only buy what you absolutely need. Put each potential purchase to the test: is it within your means and is it something that you really need?
If you can’t get a normal card due to low credit score, look into a secured card. These types of credit cards often require a good faith deposit to open a new account. By using a new card responsibly, your credit rating will start to increase.
Interest Rates
You can get better interest rates on credit cards and loans when you have a good credit score. You’ll be able to make your payments more easily and get your debt paid off quickly. Take advantage of special offers and favorable interest rates to secure manageable credit payments and a good credit rating.
Once you have your credit score higher, you will be able to finance a house. Paying down your mortgage improves your score as well. Credit rating companies will judge you a reliable risk when you have verifiable assets such as a home. Having a good credit score is important if you need to take out a loan.
If a company promises that they can remove all negative marks from a credit report, they are lying. Unfortunately, negative marks will stay on your record for seven years. If there is incorrect, negative information, you can get it removed.
Avoid credit schemes that will get you in trouble. There are plenty of credit scams that purport to erase your existing credit file and create a new one. Do things like this can get you into big trouble with the law. The legal proceedings will be costly, and you may even be sent to jail.
Credit Agency
If you see errors on your credit reports, dispute them with the credit agency. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.
Though it is hard to make this step, consider paring down the number of credit lines to just one; this will sometimes improve your credit score. You should arrange to make payments or make a balance transfer to your open account. This way you can work on paying one credit card balance off, instead of a bunch of smaller ones.
Taking time to examine your monthly credit card bill is critical to ensure that there are no errors. Should there be any mistakes, contact the company and talk to them to avoid being reported to the credit companies.
Do everything you can to avoid filing bankruptcy. This will have damaging consequences to your credit score for ten years. Although it seems like the wise thing to do at the time, it will bring you negative consequences in the long run. If you have filed for bankruptcy in the past, it can be near impossible to obtain a loan.
Interest Rate
Pay off any balances as soon as you can. Sort your credit cards by balance and interest rate with the highest first. Then determine which credit card is the highest either in balance or interest rate and start to pay it off first. This will show creditors that you are responsible with the cards.
To keep your credit in good standing and get a better score, maintain a low balance on revolving accounts. Just lowering your balances can raise your credit score. When balances are 20, 40, 60, 80 and 100 percent of the total credit available, the FICO system takes note of it.
Now that you better understand different credit score improvement methods, it’s time to develop a plan and put it into action. Put this advice to work for you immediately to start cleaning up your credit report before your poor credit rating negatively impacts your life any further.