Beneficial Advice To Help You Repair Your Credit Score
Posted at by CreditWiz on category CreditYou have most likely done damage to your credit, whether you got a card from friends, went on too many shopping trips or were hit by economic pressures. Fortunately, there are quite a few ways that you can remedy your credit situation.
Make sure that you are never using more than 50% of your credit card’s limit. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. These bad marks stay on your record for seven years or more. It is possible, however, to remove errant information.
Make sure you do your research before deciding to go with a particular credit counselor. While many counselors are reputable and exist to offer real help, some do have ulterior motives. There are many scams out there. Smart consumers will always check to see that credit counseling agencies are, in fact, legitimate before working with them.
Do not involve yourself in illegal activities. Sites may act like you can create new credit lines and tell you how to do it. This is illegal and you will most certainly get caught. In addition to the possibility of facing jail time, you could be fined, your attorney bills may be substantial, and your reputation could be ruined.
Ask credit companies to lower all of your card limits. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
Debt Settlement
Before going into debt settlement, find out how it will affect 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. Some debt settlement companies are only after profits and do not communicate the likely consequences of their methods.
Check any negative items on your reports carefully when you begin fixing your credit. Even if the negative credit item itself is not erroneous, if any of the data pertaining to it is, then you may be possible to have it removed from your credit report.
If you are attempting to raise your score with the credit bureaus, but are encountering road blocks whenever you apply for new credit, then open an account with a credit union. You may find that the credit union has more options and better rates to offer you than banks will.
Always examine your monthly credit card bill to make sure everything is accurate. If there are mistakes, call the company. If the errors are not fixed, they could get reported to the major credit rating agencies.
If you work out a payment plan with a creditor, you should make sure to get the plan in writing. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. If you manage to pay off your debt, make sure you receive proper documentation as proof to send to credit reporting agencies.
If you are determined and ready to learn, you can fix your credit in no time. Use what you’ve learned in this article to start fixing your credit and improve your credit score.