Have you been suffering from poor credit for years? Credit score problems are increasingly common in this bad economy. This article will teach you how to protect and improve your credit.
Secured credit cards are an effective way for you to start rebuilding your credit. Anyone can get one, but you must load money onto the card as a type of “collateral”. A responsibly used new credit card will begin healing your credit score.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. If you let your balances get too high, your credit rating will drop significantly. You can either spread your debt out by transferring some of the balance to low interest cards, or better yet, pay off as much as you can.
Credit Score
A lower credit score can get you a lower interest rate. By doing this your monthly payments will be easier to afford and your bill will be paid off faster. It’s important to look for a strong credit offer with competitive rates; it will make paying off your debt and keeping a strong credit score much easier.
Having a good record allow you to qualify for things like a home mortgage. Timely mortgage payments augment your credit score. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. This will be useful in case you need to borrow money.
Interest Rates
Paying off any debts you have that have high interest rates can help you to avoid paying too much. If you are being charged a distressingly high interest rate, you may be able to talk to your creditor. However, you have entered into a legal agreement that requires you to pay accrued interest. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.
Don’t risk prison. There are plenty of credit scams that purport to erase your existing credit file and create a new one. Doing this is illegal, and you will be caught. They may seem like a small matter, but if you get caught, you could receive heavy fines and even jail time.
Before you sign any debt settlement, research what effects it will have on your credit score. Some methods of credit settlement can be a blow to your credit score, so it’s important to check into your options and find one that won’t hurt you in the long term. Debt settlers are more interested in their money than your credit rating.
When looking over your credit report, look closely at the negative report that are listed. 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.
One excellent way to get your credit score back up is to close all your credit cards except for one. Then, try to arrange payments or transfer your balances to the one account you left open. Doing this will allow you to focus on paying off one large credit card bill, instead of several smaller ones.
Credit Card
Examine your credit card charges monthly to ensure they are correct. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.
Be certain to get any credit repayment plan in writing. The documentation you gain from the creditor is important in case the company changes ownership or the creditor is no longer interested in the deal. Once you make the final payment, get a statement that verifies that the debt has been satisfied and send it to the various credit reporting agencies.
Credit Card
To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. Really analyze the purchases on your card to make sure you are not receiving any errant charges for items you never purchased. You must be accountable for each item on your statement.
Lowering the balances on revolving accounts can help you to get a better credit score. You can up your credit score by just keeping your balances lower. The FICO system makes a note when your balances are at 20, 40, 60, 80, and 100 percent of your available credit.
Keep your credit cards in your wallet. Use cash to pay for things whenever possible. Pay off any credit card purchases immediately.
Collection Agencies
One of the biggest stressors can be bad dealings with debt collection agencies. Cease and desist instructions can be used to ward off debt collectors to a point, but only really to prevent harassment. While such letters stop collection agencies from calling, the consumer is still obligated to pay the debts being disputed.
If your low credit rating has ever frustrated you and left you discouraged about your future, then apply the advice here to change your course. This advice can make all the difference between having a bad or good credit score.
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