Helpful Tips When Dealing With Credit Repair
Posted at by CreditWiz on category CreditWhether you got your credit cards on your college campus, went shopping too many times or suffered from the bad economy, you’ve probably damaged your credit. If you’re one of the many people with credit problems, read on for some ways to improve your situation.
If your credit history has put you in the position where you are not able to obtain a regular credit card, you should try to get a secured credit card to begin rebuilding your credit. Most people are able to get this type of card, but you will have to load it up with a prepaid amount of money, as a guarantee that you can pay any charges that you make. If you show a good history of payments with this card, it will help improve your credit standing.
You may be able to reduce interest rates by maintaining a favorable credit rating. By doing this your monthly payments will be easier to afford and your bill will be paid off faster. The way you can achieve an excellent credit score is by getting good offers and credit rates that are competitive in order to make paying off debt easier.
Good credit scores mean you can easily qualify for a home or car loan. Making your mortgage payment on time each month will also boost your credit score. Owning a valuable asset like a house will improve your financial stability and make you appear more creditworthy. These benefits will pay off if you need to secure a loan.
To avoid paying too much, you can refuse to pay off huge interest rates. You may be able to challenge an interest rate that is extremely high. On the other hand, you’re likely bound by a contractual agreement to pay any interest charged by lenders. Suing your creditors can be effective in some circumstances in cases where the court considers the interest rates to be excessive.
Do not do anything that will make you end up in jail. A common scam involves teaching you how to make a completely new, albeit fraudulent, credit file. Needless to say, this is against the law and you are likely to get caught. Penalties can include large fines and possibly even incarceration.
If you’re trying to fix your credit, be sure to check all your negative reports carefully. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.
If you find inaccuracies on your credit report, make sure to dispute them. Contact the credit agency in writing, with documentation to support the errors that you are disputing. 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.
If you and your creditor decided to set up a payment plan, you should first get the details of the plan in written form. This is a great way to have documentation of the plan if the creditor changes their mind or the company ownership gets changed. If you manage to pay off your debt, make sure you receive proper documentation as proof to send to credit reporting agencies.
If you are late with your payment, your credit status will suffer. Paying late is placed on your credit report which can hurt your chances of getting a loan.
Do not use your credit cards. Try to use cash instead for all of your purchases and bills. If a credit card is used for a purchase, pay the entire balance when the bill arrives.
Repairing a poor credit score can seem like a daunting task, but improving your score is possible with guidance and knowledge. Apply the advice from this article to start your march toward better credit score days.