Has your bad credit score prevented you from getting the things you want in life? In this economy, many people find their credit score plummeting. Fortunately, bad credit can be repaired, and these tips are an excellent place to start.
If you have to improve your credit, make a solid plan and follow it. Real changes come from commitment to healthy spending habits. Avoid buying what you don’t need. Consider if a purchase is both essential and affordable, and only purchase it if you can answer “yes” on both counts.
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. These types of credit cards often require a good faith deposit to open a new account. A new credit card, used responsibly, will help repair your credit rating.
Good credit scores allow you to take out loans, buy a house, and make other large purchases. Paying down your mortgage improves your score as well. Once you own a home, you will have financial stability secured by your assets, thus a good credit score. This will also be useful in the event that you end up needing to borrow funds.
Installment Account
If you want to boost your credit score and earn a decent living, open an installment account. 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. If these accounts are properly managed, they can provide a quick boost to your credit score.
Before consulting a credit counseling agency, be sure to check out their background and history. While there are lots of counselors with your best interest at heart, there are others who just want your money. Some are just people trying to scam you. It is smart to verify the legitimacy of credit counselors prior to getting involved with them.
Call each of your charge card companies and ask them to lower the limit on them. Not only will this prevent you from owing more, but it will be reflected in your credit score because it shows that you are responsible with your credit.
If you come across a mistake on your credit report, don’t hesitate to dispute it. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency.
Credit Card
One excellent way to get your credit score back up is to close all your credit cards except for one. Transfer your balances to this one card, with the lowest interest, if this is possible. Instead of paying several smaller credit card bills, you can work to pay off one credit card.
Avoid filing for bankruptcy. Bankruptcy can make getting credit almost impossible for many years. It can be tempting to just go ahead and file bankruptcy to get out from under the debt, but the detrimental effects can be long lasting. Once you have filed for bankruptcy, it may become very difficult to secure a loan or open a new credit account.
If you are late with your payment, your credit status will suffer. Late payments are added to credit reports and they can damage your chances of getting loans or a home in the future.
Credit Card
To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. Check to be sure that you actually purchased the things that are listed on your statement, so that you are only paying for things you bought. If an error occurs, you should immediately notify your creditor.
Try lowering the balance of any revolving accounts you have. Having a lower balance will boost your credit score. When balances are and increments of twenty percent of your total available balance on that account, the FICO system will take note.
Avoid using your credit cards. Try to use cash instead for all of your purchases and bills. If a credit card is used for a purchase, pay the entire balance when the bill arrives.
Debt collectors can be like sharks. Cease and desist documents can be used to hold back collection agencies, but only to stop harassment. This doesn’t let the customer off the hook for the debt, it merely stops the threatening calls.
Be wary of any company that tells you they can instantly fix your credit. Predatory lawyers have begun to prey on people with credit problems; they charge outrageous fees to repair credit. Make sure any credit repair service you consider has a positive standing with the BBB.
If bad credit is causing your to worry, then these tips are your passport to a better life. The helpful tips help stop your credit score from falling and make it go up instead.