Become Educated About Credit Repair With These Tips
Posted at by CreditWiz on category Credit
When your credit is in trouble, it can feel impossible to find the help you need. This article will help you begin to rebuild bad credit. These easy tips can help you to save time and stress.
If your credit card has a balance of over 50% of your limit, it should be your number one priority to pay it off until the balance is under 50%. Creditors like to see you using your accounts, but still keeping your balances under 50% of your allotted credit.
Your low credit score will cut your interest rates. Lower interest rates mean lower payments, which allows you to pay off debt faster. The key to paid off credit is to find a great offer and a competitive rate so that you can pay off your debt and get a better credit score.
Interest Rates
To avoid paying too much, you can refuse to pay off huge interest rates. It is bordering on illegal for credit card companies to charge you skyrocketed interest rates. However, you signed a contract agreeing to pay off interests. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.
Any company or credit counselor that claims they can erase all negative reports from your credit history should be viewed with some skepticism. Unfortunately, negative marks will stay on your record for seven years. Items that you can get taken off your record are those that have been reported incorrectly or unfairly.
Do not do anything that will make you end up in jail. There are less than honest entities that will show you how to make a brand new credit file. This is illegal and you will eventually be caught. Legal repercussions will cost you a lot of money, and you could go to jail.
Take a look at your credit report if you have a bad score. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.
Anything on your credit report that you feel is inaccurate should be disputed. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.
Credit Report
Try not to file bankruptcy if at all possible. Bankruptcy will be noted on the credit report for 10 years, afterwards you must rebuild from scratch. It might seem like a good thing but you will be affected down the line. Most lenders will be hesitant to work with you in the future when a bankruptcy shows on your credit report.
Doing this will ensure that you keep a solid credit score. Paying late is placed on your credit report which can hurt your chances of getting a loan.
An experienced, honest credit repair agency can be very helpful. The credit repair business has a lot of unfair and shady companies. Lots of people have been taken in by credit score repair schemes. See if the company in question has a reputation on any of the user review sites before you commence business with them.
Hopefully you can apply these tips to your situation. Credit improvement can seem like an unending nightmare, but if you methodically apply the tips above, you can wake up to a high credit score. Maintain your patience levels. As long as you stay determined, you’ll see how valuable the rewards can be.