Learn About Fixing Your Credit Here
Posted at by CreditWiz on category CreditIs your low credit score holding you back? Many people see that their credit scores are dropping in this economy. Thankfully, bad credit isn’t forever. Use these tips to learn how to repair your credit once and for all.
An important tip to consider when working to repair your credit is to work closely with your credit card companies. Doing so will help you to ensure that you do not go further into debt and make your credit worse. Some of your options include negotiating for a later due date, and asking for reductions in your minimum monthly payments.
Give your credit card company a call and ask them to lower your credit limit. Not only will this stop you from overspending, it will indicate responsible behavior to a credit card company, and may enable you to get future credit.
Find out how the process will affect your credit rating before you agree to any debt settlement agreements. Research all of your options, make an informed decision about the method you chose, and only then should you agree to the settlement. Creditors are only trying to get the money that you owe them and could care less how that hurts your credit score.
If you have bad credit, have your credit cards merged into one single account. Make necessary arrangements to set up payments, or transfer the balance to your remaining account. You will be able to pay one bill instead of a plethora of small ones.
Make sure to review your credit card statement monthly to make sure there are no errors. If there are late fees you don’t deserve, act as soon as possible to get the matter resolved before it can affect your credit score.
Do not file for bankruptcy. Bankruptcies appear on credit reports for ten years. Bankruptcy may sound great because your debt goes away but there are consequences. Filing for bankruptcy will make it very difficult for you to qualify for credit in the future.
You will be able to keep up with your bills, and get a good credit score. Each late payment that you make shows on your personal credit report and can hurt you when the time comes to take out a loan.
Go through all the statements you receive. Make sure that all of your fees and charges are correct and that there are not any items that were not authorized by you. You are responsible for the accuracy of information on your credit card statments.
To keep your credit in good standing and get a better score, maintain a low balance on revolving accounts. Simply lowering the balances on your open credit accounts can give quite a boost to your credit scores. The FICO system notates when a balance on a card is at 20,40,60,80, and 100 percent of the total available credit.
Make sure the credit repair agency you are working with is legitimate. Unfortunately, the credit repair business does have a significant number of companies that are not reputable. Lots of people have been taken in by credit repair schemes. Take the time to read reviews of different agencies. This will allow you to find an honest one to work with.
One of the biggest stressors can be bad dealings with debt collection agencies. You can use a cease and desist letter to stop any harassment from collection agencies. A letter like this may stop a collection agency from harassing you, but you are still on the hook to pay your debts.
This advice and a little motivation are all you need to turn your bad credit around. This information can assist you in stopping the downward direction of your FICO credit score, and making it head back up.