Has your poor credit been holding you back from getting the things you need? A lot of people’s credit scores are going down in this economy. Fortunately, a number of methods for improving such ratings do exist, and you can begin using them right away by reading these helpful hints.
There are secured credit cards available if your credit rating is too low to open up a regular credit card account. You are more likely to be approved for this type of card because, once funded, the banks feels secure that you will pay them back. A new credit card, used responsibly, will help repair your credit rating.
Installment Account
Try an installment account to get a better credit score and make some money. Choose an installment account you can afford, since you will have to leave a certain amount of money on it at all times. Paying on time and maintaining a balance will help improve your credit score.
It’s vital that you actually begin paying the bills that you have if you want to improve your credit. You can’t just pay whatever you want whenever you want. You need to pay your entire balance when it’s due. After you have paid off some old bills, you will see an immediate improvement in your credit rating.
Call each of your charge card companies and ask them to lower the limit on them. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.
Before you agree to enter a debt settlement, learn about what happens to your credit as a result of it. Some debt settlements are better than others. Do your homework and find out how your score will be impacted before agreeing to anything. Debt settlers are more interested in their money than your credit rating.
Credit Report
The first step in repairing your credit involves a thorough and careful check to ensure your credit report doesn’t contain erroneous information. If you find errors in any of the information, you might be able to request the entire negative record be removed from your credit report.
Officially dispute any errors you find on your credit reports. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter.
In order to get a hold on your credit, focus on closing all accounts except one. Try to make a payment or transfer your balance to your open credit account. This way you can work on paying one credit card balance off, instead of a bunch of smaller ones.
Carefully check all charges on your monthly credit card statement for errors. If there are late fees you don’t deserve, act as soon as possible to get the matter resolved before it can affect your credit score.
You should get all terms and conditions in writing if you choose to deal with a creditor. Having the plan in writing will protect you if the creditor reneges on the plan or if your debt is transferred to another creditor. Finally, when it is paid in full, get documentation thereof to submit to credit agencies.
Do everything possible to avoid bankruptcy. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. Though the idea of ridding yourself of debt can sound appealing, the long term consequences just aren’t worth it. Once you have filed for bankruptcy, it may become very difficult to secure a loan or open a new credit account.
If a poor credit rating has left you feeling discouraged, turn your situation around by applying the guidelines you have just read. These tips can help stop the free-fall of your credit score and start making your score rise.