Target Your Credit Worries With Some Great Advice
Posted at by CreditWiz on category CreditYou can receive unwanted doses of stress from the effects of a poor credit score. It can be even more stressful when you have to deal with poor past decisions. It may not be the easiest thing you’ll do, but it is possible to clean up your credit. Here are some excellent tips that can assist you in rebuilding your credit.
If you have a poor credit history and can’t qualify for a credit card, get a secured card. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. Responsible use of any credit card can help your credit rating. However, never forget that irresponsible use will get you in trouble every time.
If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
Maintaining a respectable credit score will enable you to obtain lower interest rates. It will lower your monthly payments, so your debt will be taken care of at a much quicker rate. Getting better interest rates leads to an easily maintainable good credit score.
When you have a good credit rating, you will be able to easily get a mortgage loan. Making mortgage payments in a timely manner helps raise your credit score even more. Home ownership also means you have assets that you can rely on to increase your credit score. This will be very helpful if the time comes where you need to take out a loan.
Any company or credit counselor that claims they can erase all negative reports from your credit history should be viewed with some skepticism. Regardless of their claims, these debts will stay on your report for seven years at a minimum. Incorrect information may be erased though.
Call each of your charge card companies and ask them to lower the limit on them. This will help you accomplish three things: 1. You will avoid being overextended. 2. Credit card companies will begin to view you as responsible. 3. It will be easier for you to get credit as time passes.
Before you sign any debt settlement, research what effects it will have on your credit score. Some methods of credit settlement can be a blow to your credit score, so it’s important to check into your options and find one that won’t hurt you in the long term. The creditor is only interested in receiving the money due, and is not concerned with your credit score.
Take a look at your credit report if you have a bad score. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.
Officially dispute any errors you find on your credit reports. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Your letter should be sent with a request for return receipt, so you can have a record that it was received by the reporting agency.
Many times you and your creditor can work together to come up with a prepayment plan. If so, be sure you get a written agreement stating the terms. You want documentation to back yourself up so there will be no problems in the future, and if the company owner changes you will have more of a chance of keeping your plan. After you have paid off your debt, send proof of this to the major credit agencies.
You have a long way to go to get the credit score you want from the advice you got here. Because you are rewriting your credit report, you need to be consistent in making all of your payments. Stop worrying and start repairing your credit score now!