So many people have poor credit these days because of the bad economy, lay offs, and increased cost of everyday living expenses. Luckily the tips provided here are useful ways to get your credit score looking healthy once again.
Creating a payment plan and sticking with it is just the first step to getting your credit on the road to repair. You have to stay focused and committed if you want to make concrete changes to your financial situation. Limit your purchases only to things that are absolutely necessary. Put each potential purchase to the test: is it within your means and is it something that you really need?
When you have a good credit rating, you will be able to easily get a mortgage loan. You can improve your credit by paying your mortgage on time. Having a major asset like a house also looks good to potential creditors. This will also be useful in the event that you end up needing to borrow funds.
Installment Account
Opening an installment account can give quite a boost to your credit score. Make sure you can afford to make the payments and try to maintain a minimum monthly balance. Keeping an installment account will help your credit score.
Avoid paying off high interest rates so that you don’t pay too much. The incredibly high interest rates can get challenged and reduced in some situations. You did sign a contract and agree to pay interest. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
Never trust a business or person who offers to clear up your credit for a price. Especially if it is correct information they say they can remove. Regardless of their claims, these debts will stay on your report for seven years at a minimum. Items that you can get taken off your record are those that have been reported incorrectly or unfairly.
To start fixing your credit, you will have to pay your bills. More importantly, you need to start paying your bills in full and on time. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
Work closely with all of your creditors if you are aiming towards repairing your credit. This prevents you from sinking further into debt or further damaging your credit score. Contact your credit card company and request to change your scheduled due date or interest rate.
Don’t get involved in anything that could get you arrested. Scams abound on the internet that show you how to change your credit file. Do not think that you can get away with illegal actions. You could end up owing a great deal of money or even facing jail time.
Sign up with a credit union if you need to get a new credit line and are having a hard time. Local credit unions might have different credit products than national banks, because they can focus on local market conditions.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. Include proof along with a letter disputing the claim to the agency that recorded the errors. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
Live within your means. You you need to rewire your thought process. For a while, the easy availability of credit encouraged people to buy more than they could afford. We now must pay for that. Take a realistic look at your financial situation and determine how much you can actually spend.
Credit Card
Try to pay down all of your debts until you’re only carrying a balance on one. Make necessary arrangements to set up payments, or transfer the balance to your remaining account. Instead of paying several smaller credit card bills, you can work to pay off one credit card.
Take the time to ensure each month’s credit card bill is correct. If this is the case, you need to call the company right away to avoid them from reporting it to credit reporting agencies.
Try lowering the balance of any revolving accounts you have. Lowering your balances is one way to get a better credit score. The FICO system will make a note when the balances are at 20, 40, 60, 80 and 100 percent of the total credit available.
Now that you know how to improve your credit score, why wait? Put this advice to work for you immediately to start cleaning up your credit report before your poor credit rating negatively impacts your life any further.