Repair Your Credit, Repair Your Life As Well!
Posted at by CreditWiz on category Credit
If you knew exactly the amount and to whom you owed the money, you might not have been in debt to begin with. But now it is time to work on fixing your score for a solid future. The following advice can greatly help you rebuild your credit rating.
The first step in repairing your credit is figuring out a plan that works for you, and sticking with it. You must be committed to making real changes in the way you spend money. Limit your purchases only to things that are absolutely necessary. Consider if a purchase is both essential and affordable, and only purchase it if you can answer “yes” on both counts.
Credit Card
If you have a poor credit history and can’t qualify for a credit card, get a secured card. You are more likely to be approved for this type of card because, once funded, the banks feels secure that you will pay them back. Responsible use of a credit card can help rebuild your credit.
If you have credit cards with balances that are greater than fifty percent of the maximum, you should pay those down as quickly as possible. It’s best to keep all of your credit cards below the fifty percent mark! When your debt is over 50%, credit ratings usually go down. With that said, try to spread out the debt that you have or try paying it off.
Before going into debt settlement, find out how it will affect your credit score. Do some heavy researching before starting an agreement with any creditor; there are other options that may not damage your credit score as heavily. The creditor does not care what happens to your credit score, as long as they get their money.
If you find any errors on your credit report, you should dispute them. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. 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.
Do not use credit cards to pay for things that you simply cannot afford. You will need to change the way you think. 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. Instead of spending more than you can afford, take a long hard look at your income and expenses, and decide what you can really afford to spend.
High credit card balances can damage your credit. The first step to repairing credit is to pay those balances down. Pay down credit cards that have the highest amount owed, or the highest interest rates. Creditors will see this action as a sign that you are responsible and educated.
Carefully read the small print on your statements. Take a second look to make sure that you are being charged only for what you actually purchased. You bear the responsibility for looking after your own best interests, and you are the only person who will know if your statement is accurate.
This article shows that debt reduction and repairing credit simply takes common sense. Use the simple information from this article and you should have no trouble fixing your credit score.