We Have The Tools To Repair Your Damaged Credit!
Posted at by CreditWiz on category CreditYou need to know what you owe and the companies to which you owe money before it is too late and still more debt is created. Now that you are seriously in debt, you need to work extra hard to repair your poor credit. Follow this advice to improve your credit score quickly.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
You can reduce your interest rate by maintaining a high credit score. This will make your payments easier and it will enable you to repay your debt a lot quicker. Getting better interest rates leads to an easily maintainable good credit score.
Try an installment account to get a better credit score and make some money. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. If you use these accounts, your score will go up rapidly.
If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. 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. You did sign a contract and agree to pay interest. Suing your creditors can be effective in some circumstances in cases where the court considers the interest rates to be excessive.
Start paying on bills to help your credit. Not only must bills be paid, but they must also be paid in full and in a timely manner. You will notice how quickly your credit score increases when you start paying off those overdue bills.
Make sure you thoroughly research into any credit repair agency or counselor before you do business with them. There are some counselors that are real, while others are basically scammers. Some will try to cheat you. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.
Stay cautious and aware of scams online that can lead you to even bigger problems. As we speak, people are trying to take advantage of illegal practices to have people create credit files that can get them into trouble. These scams are not legal and there will be repercussions. Taking these short cuts will end up costing you money and could lead to a stay in jail.
If you find any errors on your credit reports, dispute them. You should contact the credit bureaus both online and by certified letter; be sure to include proof of your claims. Also include a request for a return receipt to make sure the agency gets it.
Live within your means. You may have to overhaul your entire mindset when it comes to money. In many cases, people are using credit cards to buy things they want, rather than focusing on things that they need. Be realistic about the lifestyle your income affords you.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. This provides you with documentation that an agreement is in place in case the company changes hands or the creditor tries to change the terms of the agreement. 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.
As you can plainly see here in this article, getting out of debt and repairing your credit score is more about common sense than you may have realized. However, if you implement the advice you have just been given, you can attain your goal of having a respectable credit rating once again.