Repair Your Credit And Get What You Deserve Out Of Life!
Posted at by CreditWiz on category CreditHave you been suffering from poor credit for years? Current economic conditions are affecting a lot of people’s credit. Fortunately, there are lots of ways in which you can improve your score. Here are some credit repair tips that you can follow.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
You will be able to get a lower interest rate if you keep your personal credit score low. It will lower your monthly payments, so your debt will be taken care of at a much quicker rate. Getting better interest rates leads to an easily maintainable good credit score.
A respectable credit score makes it much easier for you to purchase a home with a mortgage. Paying mortgage notes on time will keep your credit scores high. Home ownership demonstrates that you have financial stability because they are secured by a valuable asset, and this results in a raised credit score. This will be very helpful if the time comes where you need to take out a loan.
If your debt includes large amounts for interest charges contact the debt collector and see whether you can pay the original debt and avoid some of the additional interest charges. It is bordering on illegal for credit card companies to charge you skyrocketed interest rates. You did however sign a contract that agrees you will pay off all interests as well as the debt. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
Prior to agreeing to a debt settlement agreement, find out how that process is going to impact 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. Remember creditors want their money. They really don’t care about your credit scores. That is up to you to protect.
Take a look at your credit report if you have a bad score. Errors are not infrequent in credit reports. If you can prove the credit bureau is in the wrong, they should correct the reported error or remove it entirely.
Don’t spend more than you make each month. You you need to rewire your thought process. While you may see your peers racking up credit debt, be sure to not fall into the same trap. Examine your finances and make wise decisions about how much you should be spending.
If a creditor agrees to give you a payment plan, get that payment plan in writing. You want documentation to back yourself up so there will be no problems in the future, and if the company owner changes you will have more of a chance of keeping your plan. Every time you get a debt paid off, ask the company to notify the credit bureaus.
Do not file for bankruptcy if you do not have to. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. Though it may seem necessary at the time, you should weigh the costs over the next ten years before you decide to go through with the filing. Once bankruptcy has been filed, it could permanently halt your chances of ever obtaining credit again in the future.
If you have been frustrated and felt discouraged about your bad credit score, take these tips and use them to change that. Stop the damage and start repairing your credit score today.