Get Better Credit Using These Easy Tips
Posted at by CreditWiz on category CreditSo many people have poor credit these days because of the bad economy, lay offs, and increased cost of everyday living expenses. Read on for some insightful techniques to improve your credit.
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. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. Remember you agreed to pay any interest that accrued over the life of the account. It is possible that you can sue a creditor and claim that the interest rate charged is unreasonably high.
Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. Bad marks on your report will not go away for seven years. Be aware, however, that incorrect information can indeed be erased from your record.
You can contact your creditors and request a lower limit. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
Find out how your debt settlement contract will make your credit score look. Do some heavy researching before starting an agreement with any creditor; there are other options that may not damage your credit score as heavily. They do not care about the effects of what they do to your credit score and are just in it for the money.
If you are doing hardcore credit repair, you need to scrutinize your report for negative entries. While the credit item itself may not be in error, if you can find a mistake in the date, amount, or any other factor, you may be able to have the whole item removed from your report.
Dispute any errors that you find on any of your credit reports. Write a dispute letter to any agencies with recorded errors, and include supporting documents. Make sure when you send the dispute package that you request proof by signature that it was received.
Make sure a credit repair agency is legitimate before choosing to work with them. There are plenty of credit repair agencies that don’t follow through with their promises. Many people fall victim to these scams every day. Take the time to read reviews of different agencies. This will allow you to find an honest one to work with.
Lenders do not care about the reason you have negative information on your credit report. Having some positive credit history is the only way that negative reports can be counteracted when lenders are analyzing your credit liability. The less you can do to attract attention to negative reports, the better.
The worst part of a credit crisis may be the collection agencies. Consumers can legally issue letters to collection agencies to cease and desist if they are being harassed. These letters will discourage contact from collection agencies. They can prevent collectors from continuing to call a debtor, but they do not excuse the debtor from his or her outstanding financial obligations.
You shouldn’t have to wait to get going with your credit repair. Low credit scores can adversely affect the actions you take in life so start now to begin increasing your credit rating.