You have most likely done damage to your credit, whether you got a card from friends, went on too many shopping trips or were hit by economic pressures. This article will give you some tips on how you can improve your situation.
When your credit is so bad that you can’t get a ‘regular’ credit card, a secured one will help you to repair your credit. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. If you utilize a credit card responsibly, it can aid in the repair of your credit rating.
Think about getting an installment account to save money and improve your credit score. An installment account requires that you make a minimum payment each month. It is imperative that you only take an installment account that is affordable. Your FICO score will rise over time, if you responsibly manage this type of account.
Interest Rates
If you don’t want to pay too much at a time, you can avoid paying higher interest rates than you started with. Creditors trying to charge more from you than what they originally loaned you plus a reasonable amount of interest are usually willing to negotiate. Remember that you agreed to pay that interest when you signed the contract. It is likely you can have exorbitant interest rates reduced if you sue the creditor.
Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. Avoid collection to improve your credit score. See if the company will allow you to modify the monthly due date, or reduce the payments.
You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. There are some legit counselors, and there are some that have ulterior motives. Some are not legitimate. Smart consumers will always check to see that credit counseling agencies are, in fact, legitimate before working with them.
Don’t risk prison. You should steer clear of internet programs that show you how to clear your credit. This is illegal and you will most certainly get caught. The legal costs can cripple you, and there is a very good chance you will be sent to jail.
Make sure to have as low as possible of a credit line available to you. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Sending your letter by certified mail provides you with proof that the letter was received.
When you get your monthly credit card bill, check it over to see if there are any mistakes. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
Credit Cards
Pay the balances on all credit cards as soon as you can to start the credit restoration process. You should first work on paying down the credit cards with the highest balance or interest rates. By doing this, you will show your creditors that you are trustworthy with your credit.
This is one of the quickest way to create and maintain a credible financial record. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
You need to read and understand the credit card statements you receive in the mail. You want to double check that all the charges are accurate, and that you are not paying for something you did not purchase. If an error occurs, you should immediately notify your creditor.
Defending Statement
Our initial inclination is to defend ourselves, but in truth, lenders will not even glance at your defending statement. Inclusion of the defending statement could actually have the opposite effect as it brings more attention to the fact that you have a negative mark on your report.
It can be stressful to try and figure out how to improve your credit, but if you keep at it, you can make things better and see the results you want. Use the information you have learned here to help get you started on the journey to a better credit score.