It’s no surprise that there are so many people facing the hardships of bad credit today given the current state of the economy, yet don’t become discouraged because of this. Follow these tips if you need a better credit score.
If you make a decent income, consider an installment account when you want to give your credit score a boost. 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. A properly managed installment account will work wonders on your credit rating.
If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
If credit restoration 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. These bad marks stay on your record for seven years or more. If there is incorrect, negative information, you can get it removed.
An important tip to consider when working to repair your credit is to work closely with your credit card companies. Avoid collection to improve your credit score. Call them and see if you can change the payment terms. They may be willing to change the actual payment or move the due date.
Credit Counselors
Make sure you do your research before deciding to go with a particular credit counselor. Although some credit counselors are truthful and legitimately helpful, other credit counselors are not honest and upfront with their motives. Some are simply fraudulent and are out to get your money. You should research any counseling service you are considering prior to initiating communications with them.
Give your credit card company a call and ask them to lower the limit on your credit card. 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.
Know how debt settlements will influence your credit score prior to making a decision. Some methods will be less damaging than others, and you need to research them all before signing an agreements with a creditor. They do not worry about how your credit score looks; they want to get money.
One way to increase your credit score is to become a member at a credit union. You may find that the credit union has more options and better rates to offer you than banks will.
Interest Rate
To fix damaged credit, pay off your credit card balances as fast as you can. Sort your credit cards by balance and interest rate with the highest first. Then determine which credit card is the highest either in balance or interest rate and start to pay it off first. Beginning to pay your credit card balances off will show creditors that you are making a valiant effort and are credit worthy.
If you are late with your payment, your credit status will suffer. Late payments are reported to all credit report companies and will greatly decrease your chances of being eligible for a loan.
Credit Card
To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. 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. You should ensure everything is okay and does not have any errors.
If you want a higher credit rating, you will need to bring down the balance on any existing accounts. Maintaining smaller balances can improve your credit rating. The FICO system makes a note when your balances are at 20, 40, 60, 80, and 100 percent of your available credit.
It is obviously somewhat difficult to let derogatory marks stand undefended, but the evidence suggests most lenders don’t use those statements in determining creditworthiness. 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.
Now that you have a good idea about various methods and techniques for repairing your credit, why wait until later to put your plan into action? Don’t let your credit score ruin your life; instead use this information to begin repairing the damage.