A Few Easy Ways To Repair Your Credit History
Posted at by CreditWiz on category CreditThe sooner you confront your debt, the less damage it will do. Understanding how much debt you owe may keep you from creating new debt. At this point, you need to practice some crisis prevention and start fixing your score. Here are some relatively easy and effective ways to improve your credit.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. You should keep your balances under fifty percent; anything over this and you can lower your credit rating, so spread out the money you own and pay down your credit cards.
Maintaining a respectable credit score will enable you to obtain lower interest rates. Lower interest rates make paying bills easier, and prevents you from incurring debt. Make sure to use a company that gives you the best rates so your bill isn’t being built up by money you haven’t even spent.
You will be able to buy a house and finance it if you maintain a good credit rating. If you wish to have an even higher credit score, make sure that you pay your house mortgage off on time. The more equity you have in your home, the more stability the banks see in you. A good credit score is necessary when you need to take out a loan.
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. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. However, you have entered into a legal agreement that requires you to pay accrued interest. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.
Make sure you research a credit counselor before you visit them. There are a lot of unscrupulous agencies scattered in among the few legitimate credit counselors that are really there to help you. Other programs, while they sound good, are complete and total scams. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.
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. Needless to say, this is against the law and you are likely to get caught. The legal costs can cripple you, and there is a very good chance you will be sent to jail.
If you are attempting to raise your score with the credit bureaus, but are encountering road blocks whenever you apply for new credit, then open an account with a credit union. Due to their focus on community finances rather than national ones, credit unions may provide better interest rates and more credit services than typical banks.
It is important to carefully review your monthly credit card statement. If there are late fees, you have to make sure that you take care of them immediately with the company so that they don’t send that information to the credit bureaus.
If a creditor agrees to give you a payment plan, get that payment plan in writing. Having documentation is important for your records but also protects you in case a creditor changes their mind. 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.
In truth, as you will see, credit repair is mostly about common sense. The advice in this article can help you get your credit back in good standing.