Start Improving Your Finances By Repairing Your Credit
Posted at by CreditWiz on category CreditA poor credit score can put you in a bad position. You might have suffered under the weight of crushing bills, or maybe you were irresponsible when you were younger. Poor credit can make those events haunt you for years. Fortunately, there are some things you can take action on right now to raise your credit score, so read on and get ready to regain control of your credit.
Work closely with all of your creditors if you are aiming towards repairing your credit. Avoid collection to improve your credit score. Talk to the company and see if you can change your due date or monthly fees.
Do not get mixed up in things that may lead you to imprisonment. Scams abound on the internet that show you how to change your credit file. This tactic is not legal, and you face serious repercussions if you are caught. You may end up in jail if you are not careful.
Joining a credit union may be a way to boost your credit score when you are having a hard time getting credit. These credit unions can probably give you better credit options in the long run.
In order to start repairing your credit, you should close all but one of your credit card accounts. Making one monthly payment will be easier than paying off different bills. Doing so will allow you to pay off one individual debt rather than a multitude of lesser balances.
Look through your credit card statement each month and make sure that it is correct. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
If you and a creditor agree on a payment plan, make sure the agreement is committed to paper. Having documentation is important for your records but also protects you in case a creditor changes their mind. Once you make the final payment, get a statement that verifies that the debt has been satisfied and send it to the various credit reporting agencies.
Paying the balances of your cards as fast as you can will help your credit score. Pay off accounts with the highest interest rates first. This helps creditors realize that you are using credit cards wisely.
Lowering the balances on any currently revolving accounts will increase your credit score. You can up your credit rating just by paying down your balances. The FICO system makes a note when your balances are at 20, 40, 60, 80, and 100 percent of your available credit.
One of the biggest stressors can be bad dealings with debt collection agencies. If a debt collection agency is harassing you, writing a cease and desist letter can stop the harassment. These letters may prevent collection agencies from making phone calls, but the consumer remains responsible for paying the debt.
Repairing your credit isn’t something you can do overnight, but the best way to fix it is to slowly raise it back up. A secured credit card, one that is prepaid, will help you improve your credit score. Lenders look favorably towards you when you faithfully pay your bills on time.
Devise a plan for paying off any collection accounts or past due debts. Even after you pay them off, they will still be present on your credit rating, but at least they will show up as paid and will not continue to harm your rating.
Carrying a low credit score can make you feel negative toward many aspects of your life. Following the helpful advice discussed in this article, however, can give you a feeling of empowerment as you learn to effectively tackle credit issues.