You might feel like you are being taken advantage of it you have bad credit. It can be hard to move on with life when a negative credit score is always following you throughout your endeavors. Don’t despair, there are ways you can repair your credit.
Credit Cards
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.
For a credit score boost, an installment account will help. Make sure you can afford to make the payments and try to maintain a minimum monthly balance. A properly managed installment account will work wonders on your credit rating.
Credit Report
No credit score repair company can remove factual information, no matter how damaging, from your credit report. Negative entries that are otherwise accurate will stay on your credit report for a minimum of seven years. Know, however, that it is possible to delete information that is actually wrong.
When trying to repair your credit, research any credit counselors you consider using very thoroughly. While there are lots of counselors with your best interest at heart, there are others who just want your money. There are a lot of people out there that are trying to take advantage of those who are down on their luck. It is wise for consumers to not give out personal information unless they are absolutely sure that the company is legit.
Do not get mixed up in things that may lead you to imprisonment. There are plenty of credit scams that purport to erase your existing credit file and create a new one. This is illegal and you will most certainly get caught. In addition to the possibility of facing jail time, you could be fined, your attorney bills may be substantial, and your reputation could be ruined.
Put the spending brakes on yourself by lowering your credit limit on all of your cards. Not only can this tactic prevent you from getting yourself in over your head with debt, but it can also imply that you are responsible to those companies and to any future companies.
Carefully check all charges on your monthly credit card statement for errors. If this is the case, you need to call the company right away to avoid them from reporting it to credit reporting agencies.
Bankruptcy should only be viewed as a last resort option. It is noted on someone’s credit report for 10 years. Bankruptcy not only zeros out your debt, it also zeros out your credit score. If you do file for bankruptcy, it will be extremely difficult to get approved for a loan or a credit card for many years, if ever.
In order to start repairing your credit, you should try to pay down the balances on your credit cards as quickly as possible. First, work on the accounts with the highest interest rates and the highest balances. This builds the positive credit history that creditors like to see.
Carefully read the small print on your statements. It’s up to you to ensure that the charges on your bill are correct and that you haven’t been double charged, overcharged or charged for something you didn’t buy. Do not trust the credit card companies to have your back, guarantee you do not pay debt that is not yours yourself.
Credit Score
To increase your credit score lower the amount owed on revolving accounts. You can up your credit score by just keeping your balances lower. Your FICO credit score notes what your balances are on your revolving accounts based on the credit you have available.
People with bad credit often feel as if there is no way out of their financial crisis. Use the advice provided here and you soon will be making a change in your credit.