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. The following tips are presented to help you improve your credit score and help you be more disciplined with your money.
The first thing you need to do before beginning to repair your credit is outline th steps required to do so, then follow those steps without deviation. You must be dedicated to making some significant changes in the way you spend your money. Just buy what you need, and forget unnecessary purchases. Consider if a purchase is both essential and affordable, and only purchase it if you can answer “yes” on both counts.
Try opening an installment account. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. If you use one of these types of accounts, your score will quickly improve.
If your debt includes large amounts for interest charges contact the debt collector and see whether you can pay the original debt and avoid some of the additional interest charges. It is bordering on illegal for credit card companies to charge you skyrocketed interest rates. You did sign a contract and agree to pay interest. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
Avoid credit schemes that will get you in trouble. There are less than honest entities that will show you how to make a brand new credit file. This is illegal and you will most certainly get caught. The criminal charges that you face will be very expensive, and you may also have to serve prison time if found guilty.
Though it is an unsettling prospect, consider asking your credit card provider to reduce the amount of credit extended to you. 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.
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. Creditors just want their money and really aren’t interested on how it will affect your score.
You should look over all negative reports thoroughly when attempting to fix your credit. Errors are not infrequent in credit reports. If you can prove the credit bureau is in the wrong, they should correct the reported error or remove it entirely.
Sign up with a credit union if you need to get a new credit line and are having a hard time. Due to their focus on community finances rather than national ones, credit unions may provide better interest rates and more credit services than typical banks.
You should look at your credit card bill every month to make sure it is correct. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.
Doing so can help to keep good credit. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
When you receive a credit card statement you should immediately look at the statement. You want to double check that all the charges are accurate, and that you are not paying for something you did not purchase. Take the reigns, and go over your monthly credit card statements. No one else will do it, it is your responsibility.
You may want to justify yourself, but the statement has no effect on whether a lender will extend credit to you or not. It is irrelevant. 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.
The worst part of a credit crisis may be the collection agencies. You can use a cease and desist letter to stop any harassment from collection agencies. Sending the letter does not mean you no longer have to pay the bill, it only stops the collection agency from calling.
Don’t put off until tomorrow what you can do today, especially now that you are armed with the necessary tools to put a plan into motion. Use this information to help increase your credit rating.