Tips On How To Repair Your Credit History
Posted at by CreditWiz on category CreditThere are a lot of ways to damage your credit score, from falling for a credit card scam to just being unlucky with the recent economy. You can turn things positive on your credit report by starting with these steps.
Planning is the first step to repairing your credit. You can’t just make up a plan and not change how you spend your money. If you don’t need something, don’t buy it. Before purchasing an item, ask yourself if it is absolutely necessary and well within your financial means. If you cannot answer each of these in the affirmative, do not buy the item.
A secured credit card might be a good option for the person with a poor credit score. Anyone can get one, but you must load money onto the card as a type of “collateral”. Limited spending and regular payments can turn a new credit account into a valuable credit repair tool.
Try an installment account to get a better credit score and make some money. When opening an installment account, you need to make a monthly payment, so get something you can afford. You will improve your credit score by properly managing an installment account.
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. The incredibly high interest rates can get challenged and reduced in some situations. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. Suing your creditors can be effective in some circumstances in cases where the court considers the interest rates to be excessive.
Always do research before contracting a credit counselor. While there are lots of counselors with your best interest at heart, there are others who just want your money. You’ll find that other ones are just scams. Wise consumers always verify that credit counselors are legitimate before dealing with them.
Know how debt settlements will influence your credit score prior to making a decision. Some agreements cause less damage to your credit score than others, and each should be considered prior to making an arrangement with a creditor. They are just out to get their money and do not care how that effects your credit score.
When attempting to improve your credit, you should go over any negative marks with a fine tooth comb. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
If you see errors on your credit reports, dispute them with the credit agency. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.
Too many credit cards is a common cause of financial strain, so close all of your accounts aside from one. Make necessary arrangements to set up payments, or transfer the balance to your remaining account. You can pay down one credit card in full, rather than chipping away at many.
Always examine your monthly credit card bill to make sure everything is accurate. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
If you are determined and ready to learn, you can fix your credit in no time. With the tips above, you are better prepared to take action and get your credit situation back where it should be.