Bad Credit? You Can Start Fixing It

There are millions of bad credit scores out there today. It’s no surprise, not with a poor economy, rising living costs, stagnant wages, and a nasty employment market. Read on for some insightful techniques to improve your credit.

Creating a payment plan and sticking with it is just the first step to getting your credit on the road to repair. Making changes to become a wise spender means you have to make a budget and rules, then follow them. Only the necessities can be purchased from here on in. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.

Interest Rates

You can dispute inflated interest rates if you are being charged more than you should be. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. Remember you agreed to pay any interest that accrued over the life of the account. It is likely you can have exorbitant interest rates reduced if you sue the creditor.

If you are looking to repair your credit, then you should not believe a company if they promise they can remove negative information from the report. Specifically if this information is correct. Negative entries on your record stick around for a term of seven years at a minimum, even if you take care of the debts involved. However, if there is incorrect information, you can have it cleared up easily by yourself.

You must pay your bills consistently if you want to repair your credit. It is key that you pay them on time and in full. Do the best that you can. When you pay off past due lines of credit your credit score will go up.

Contact the credit card issuer with a request to lower your card’s limit. This will prevent overextending yourself and lets the company know about your responsible borrowing habits. You could get credit easier in the future.

When looking over your credit report, look closely at the negative report that are listed. While the credit item itself may not be in error, if you can find a mistake in the date, amount, or any other factor, you may be able to have the whole item removed from your report.

Credit Card

When you get your monthly credit card bill, check it over to see if there are any mistakes. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.

Many times you and your creditor can work together to come up with a prepayment plan. If so, be sure you get a written agreement stating the terms. If the creditor tries to change the agreement or if it the company is sold to someone else, you will have documentation to support your case. When you pay it off, send a written copy of proof of payment to all three credit reporting agencies.

Do not file for bankruptcy. It can adversely affect your credit for up to 10 years. Although it seems like the wise thing to do at the time, it will bring you negative consequences in the long run. Filing for bankruptcy will make it very difficult for you to qualify for credit in the future.

Credit Cards

Pay off any balances as soon as you can. No matter what the balances are on your credit cards, pay down the highest interest rate cards first. This helps creditors realize that you are using credit cards wisely.

Lowering the balances on revolving accounts can help you to get a better credit score. You can improve your score by lowering your balances. The FICO system will make a note when the balances are at 20, 40, 60, 80 and 100 percent of the total credit available.

An experienced, honest credit repair agency can be very helpful. There are many scams that happen in the industry of credit improvement. Many people have fallen for scams involving credit improvement. Read reviews online to help you choose the right agency for you.

Credit Score

Why would you wait until tomorrow to make changes that could be done today? You could easily use the tips that have been provided to better your credit score. Before your low credit score begins to adversely affect your life, use the information from this article to gradually increase your overall credit rating.

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