Some of The Best Ways To Repair Your Credit
Posted at by CreditWiz on category Credit
Has your bad credit been giving you problems? This economy has caused an unprecedented epidemic of bad credit. Luckily, there are things you can do to improve your score. You can start today after reading these tips for credit improvement.
Credit Card
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
You can reduce your interest rate by maintaining a high credit score. A lower interest rate means lower monthly payments, and less time paying off your debt. Take advantage of special offers and favorable interest rates to secure manageable credit payments and a good credit rating.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. These things are, generally, on your record for seven years. Be aware, however, that incorrect information can indeed be erased from your record.
A good tip is to work with the credit card company when you are in the process of repairing your credit. By keeping the lines of communication open, you will avoid getting into more debt, making your credit score even worse. One way to tackle this problem is to call them and ask if you can have the due date or monthly charge amount changed.
Credit Counselor
Before you hire a credit counselor, make sure that you have done your research. There are a lot of unscrupulous agencies scattered in among the few legitimate credit counselors that are really there to help you. Many others are nothing more than scams. Smart consumers make sure that a credit counselor is legit before starting to exchange any money or sensitive information.
Stay cautious and aware of scams online that can lead you to even bigger problems. There are schemes online that will show you how to establish an additional credit file. That is illegal and you are going to be caught. You could go to jail if you have a lot of legal issues.
Credit Card Companies
Call and request lower limits on your cards from the credit card companies. This is likely to keep you from overusing credit, which can be a financial burden. It also lets credit card companies know that you are responsible, and this makes them more likely to extend credit to you as time goes on.
Find out how the process will affect your credit rating before you agree to any debt settlement agreements. Some methods are less damaging than others; research them all before making an agreement with your creditor. They are just out to get their money and do not care how that effects your credit score.
Joining a credit union may be a way to boost your credit score when you are having a hard time getting credit. 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.
Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. When you mail your dispute package, be sure to make arrangements for confirmation of receipt. In this way, you will have documentation that your information has been received.
Credit Score
It is understandable if you are frustrated about your credit score. Use these tips to change all that. These strategies can aid in stopping your credit score from going down and you will be able to make it go up again.