Fix Your Credit With These Easy Tips
Posted at by CreditWiz on category CreditDoes your credit report keep you awake? The following advice will help in the path to getting your credit back on track.
When you want to fix your credit, you need to start somewhere. Have a realistic plan and stay with it. You must be committed to making real changes in the way you spend money. Sticking to necessities for a while is crucial. Ensure that you can afford everything you buy and that you really need it.
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! If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
A respectable credit score makes it much easier for you to purchase a home with a mortgage. If you wish to have an even higher credit score, make sure that you pay your house mortgage off on time. Credit rating companies will judge you a reliable risk when you have verifiable assets such as a home. This is helpful in case you want to borrow money.
No credit repair company can remove factual information, no matter how damaging, from your credit report. It seems unfair, but accurate negative information will stick around for seven years. Stay mindful, however, of the fact that false information can be stricken.
Before you choose a credit counseling agency, find out more about them. Many companies are legitimate and hold your best interests as a priority, but some are outright scams. Others are outright scams. To help protect yourself from fraud, investigate any credit counselors. One way to check an agency out is to check with the Better Business Bureau.
Before you decide to go through with a debt settlement, you should be sure you know how it will affect your credit. Some methods are less damaging than others; research them all before making an agreement with your creditor. They do not care about the effects of what they do to your credit score and are just in it for the money.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. If you notice a mistake on your report, you could get some items crossed off. Even if the item itself is right, an error in the date or amount gives you the right to contest it.
Dispute every error you identify on your credit report. Draft a letter to reporting agencies disputing negative entries and also submit any available documentation. Sending your letter by certified mail provides you with proof that the letter was received.
In order to start repairing your credit, you should close all but one of your credit card accounts. Transfer your balances to this one card, with the lowest interest, if this is possible. Paying off one main credit card will be easier than paying off several cheaper ones.
Check your credit card carefully each month to ensure that there’s no incorrect information. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
If you work out a payment plan with a creditor, you should make sure to get the plan in writing. The documentation you gain from the creditor is important in case the company changes ownership or the creditor is no longer interested in the deal. Once the debt is fully paid, you need to get a statement verifying this from the creditor and send it to each of the major credit bureaus.
Now you can see that your credit report does not need to be the cause of stress. When you face your fears about your credit, you can get started on fixing it. If you follow the tips we have shared, you will end up with a credit report that many only dream of.