The results of a poor credit score are traumatic to deal with. It is really bad if you have made bad choices in your past and they are still affecting you now. Meanwhile rebuilding your credit may seem like a challenging process, but it is doable. This article will help you design a plan adapted to your situation.
If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. Any time you exceed 50% of your credit limit, your credit rating is affected. Pay off credit cards as fast as you can, or spread the debt out further.
It is easy to get a mortgage for a house if your credit score is good. By paying off your mortgage on time, you will even improve your credit score further. Owning a home shows financial stability, which is great for your credit. This will be beneficial when you apply for loans.
For a credit score boost, an installment account will help. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. A properly managed installment account will work wonders on your credit rating.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. Pay these bills on time, and make sure you pay the full amounts owed. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
Avoid credit schemes that will get you in trouble. You should steer clear of internet programs that show you how to clear your credit. Doing this is illegal, and you will be caught. Taking these short cuts will end up costing you money and could lead to a stay in jail.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. Also include a request for a return receipt to make sure the agency gets it.
Check your credit card statement each month and make sure there aren’t any discrepancies. If there are late fees, you have to make sure that you take care of them immediately with the company so that they don’t send that information to the credit bureaus.
If a creditor agrees to give you a payment plan, get that payment plan in writing. This provides you with documentation that an agreement is in place in case the company changes hands or the creditor tries to change the terms of the agreement. When you pay it off, send a written copy of proof of payment to all three credit reporting agencies.
Pay the balances on all credit cards as soon as you can to start the credit score repair process. Pay down your cards that have the highest interest and largest balances first. Doing so shows your lenders that you are responsible.
It is important for you to thoroughly look over your monthly credit card statements. You are looking to see that every charge is correct and determining whether or not you are being charged for an item you didn’t buy. You are the only one that can verify if everything on there is the way it should be.
Find a legitimate credit restoration agency to work with. There are a number of shady operators in the credit score improvement business that can cost you money and do nothing for you. Some people have been victimized by scams that were supposed to help their credit. By reading user reviews online, you will be able to separate the good from the bad.
If you use the tips contained in the above article, you can turn that dreadful 350 into a nice, shiny 850. Most importantly, be consistent, making sure to pay your bills on time. It is completely possible to rebuild your credit; stop worrying and start making changes.