It is likely you have done something to damage your credit rating at some point in your life, whether it was a shopping spree, a predatory loan or just being a victim of bad economic luck. Thankfully, there are methods in the below article that can help you mend this problem.
Credit Card
If you want to repair your credit but do not qualify for a regular credit card, consider a secured credit card. These accounts are much easier to get as you will have to fund the new account ahead of time with a deposit to cover any purchases. If you show a good history of payments with this card, it will help improve your credit standing.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. If you owe more than half of your credit limit on any credit card, this will have a negative impact on your rating. Plan to pay down that card as soon as possible, or see about transferring some of that debt.
Lower Interest Rates
When you have better credit, you will be offered lower interest rates on loans and credit cards. Lower interest rates mean lower payments, which allows you to pay off debt faster. 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.
Getting a reduced interest rate is the easiest way to reduce your overall debt. An interest rate that is shockingly high can possibly be ruled as illegal in certain cases. However, you agreed to pay the interests off when you signed the contract. You need to be able to prove the interest rates are too high if you want to sue your lenders.
If credit score repair is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. You have to wait for seven years before negative data can come off your record. It is possible, however, to remove errant information.
Credit counselors should always be researched thoroughly before being consulted for credit score improvement. While there are lots of counselors with your best interest at heart, there are others who just want your money. You’ll find that other ones are just scams. Knowledgeable purchasers will always make sure that the credit counselor in question is legitimate before hiring.
Credit Card Companies
Give the credit card companies a call and find out if they will lower your credit limit. 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.
Check any negative items on your reports carefully when you begin fixing your credit. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
Credit unions are an option for those who have run out of options. Credit unions can often offer better rates and more alternatives than larger banks, because they base their decisions on the local economy instead of the national situation.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Use a return receipt when you mail your package so that you can prove that the agency received it.
With some instruction and some hard work you can help your credit get back where it needs to be, so don’t be fooled by how hard it may seem. Apply the tips you learned here and get started on your way to good credit.
This is a limited-time offer. We are not able to guarantee availability if you wait!
