Worried About Your Credit? Here’s Some Advice
Posted at by CreditWiz on category CreditHaving bad credit can really hold you back from the things that you need in life. It handcuffs you in many ways, limiting many of your financial options, and can make your future uncertain and precarious. If you take steps today to repair your credit, you will find that more doors will be open to you in the future. These tips will help you repair your credit without much hassle.
Credit Limit
If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. Your credit score can be negatively impacted if you are carrying a large balance compared to the available credit you have. While you are paying off these cards, reduce the balance to a small percentage of your available limit.
Having a lower credit score can lower your interest rate. This should make your monthly payments easier and allow you to pay off your debt much quicker. Receiving competitive credit rates and good offers are important in having credit that you can pay off easily, and that will get you a great credit score.
Avoid paying off high interest rates so that you don’t pay too much. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. However, you signed a contract agreeing to pay off interests. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
Credit Card
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. By keeping the lines of communication open, you will avoid getting into more debt, making your credit score even worse. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
Before using a credit counselor, it’s important to research them completely. Many companies are legitimate and hold your best interests as a priority, but some are outright scams. Some companies you may find are outright scams. Smart consumers make sure that a credit counselor is legit before starting to exchange any money or sensitive information.
Do not try something that you do not know is legal or illegal. Creating a new credit score or using a different identity seem like easy solutions but bad credit is not worth taking this kind of risks. That is illegal and you are going to be caught. You could end up owing a great deal of money or even facing jail time.
Credit Card
Requesting that your credit card limits be lowered can benefit you. This will help you accomplish three things: 1. You will avoid being overextended. 2. Credit card companies will begin to view you as responsible. 3. It will be easier for you to get credit as time passes.
Open more doors in your future by repairing your negative credit and turning it positive. When it comes to fixing your credit, you do have options, many of which will not cost you anything. Take advantage of the tips provided and start working your way to a great credit rating now.