Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. Fortunately, you can take some actions to get your credit score climbing in the right direction.
If credit improvement is your goal, create a plan and stick with it. You have to stay focused and committed if you want to make concrete changes to your financial situation. Sticking to necessities for a while is crucial. When considering a purchase, ask yourself if the purchase is necessary and affordable, if you answer yes to both, you should buy it.
If someone promises you to improve your score by changing your factual history, this is a scam. If the information is correct, it will remain as part of your report, in most cases, for seven years. Know, however, that it is possible to delete information that is actually wrong.
Contact your creditors to request a reduction in your credit line. This will prevent you from spending too much that you do not have. It will also show the credit companies how responsible you are, and if you do need to get more credit in the future, you will have a much easier time.
If you’re trying to fix your credit, be sure to check all your negative reports carefully. Any mistakes, such as in the amount owed or the date the agreement was entered, could result in the removal of the entire negative trade line on your credit report.
Be certain to get any credit repayment plan in writing. This is a great way to have documentation of the plan if the creditor changes their mind or the company ownership gets changed. After you have paid your debt, request appropriate documentation that confirms your zero balance.
Begin the process of credit improvement by trying to pay down 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. Doing so shows your creditors that you are taking your debt problem seriously.
Read every credit cart statement you receive in full. Errors are not as rare as you might think. Make sure you aren’t paying for purchases you didn’t make. Take the reigns, and go over your monthly credit card statements. No one else will do it, it is your responsibility.
lenders will not read these statements when looking at your credit report. Do not draw more attention than needed to the bad marks on your report.
Be careful of paying for a service or a lawyer that advertises quick or instant credit improvement, many of them are dishonest. The state of the economy has caused many lawyers to practice unethical methods by promising credit improvement for a steep fee and not delivering. Make sure any credit score repair service you consider has a positive standing with the BBB.
Be aware that opening a new credit card account can affect your credit score in a negative way. Don’t be tempted to get a new credit card even if it promises you discounts at stores. As soon as you open a new credit line, your credit score drops.
Work out a plan of attack where you can pay off collectors and any other accounts that are past due. They will likely still appear on the credit bureau report but having them marked as paid is a lot better than having them appear as outstanding balances.
If you are having difficulty managing your finances, get in touch with a legitimate credit counselor. These companies will work out a repayment plan with your creditors, and help you to take control of your finances. Working with a credit counselor can help you learn to budget your money.
Nursing your credit back to good health is not as hard as it looks at first, especially when you are willing to make a persistent effort and listen to good advice. Use what you’ve learned in this article to start fixing your credit and improve your credit score.