Knowing what you owed and to whom it was owed may have prevented you from incurring the debt in the first place. But now it is time to go into damage control mode and repair your credit. The following advice is easy to follow and can help you repair your credit score.
If your credit card has a balance of over 50% of your limit, it should be your number one priority to pay it off until the balance is under 50%. 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.
You may be able to reduce interest rates by maintaining a favorable credit rating. Lower interest rates make it much easier and quicker to pay off balances. Receiving competitive credit rates and good offers are important in having credit that you can pay off easily, and that will get you a great credit score.
Having a good record allow you to qualify for things like a home mortgage. Paying mortgage notes on time will keep your credit scores high. Home ownership demonstrates that you have financial stability because they are secured by a valuable asset, and this results in a raised credit score. This will be very helpful if the time comes where you need to take out a loan.
When looking to improve your credit, avoid companies claiming that they can remove negative information if the debt is true. You have to wait for seven years before negative data can come off your record. It is possible, however, to remove errant information.
When you are trying to clear up your credit contact your credit companies. If you do this you will not go into debt more and make your situation worse than it was. This can be accomplished by negotiating with them for a change in due date or monthly charges.
Make sure you thoroughly research into any credit improvement agency or counselor before you do business with them. Many counselors are on the up-and-up and are truly helpful. Others just want to take money from you. Other counselors are nothing more than scam artists. Knowledgeable purchasers will always make sure that the credit counselor in question is legitimate before hiring.
If you find any errors on your credit report, you should dispute them. Contact the credit agency in writing, with documentation to support the errors that you are disputing. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
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. 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. Once it is paid off, you should get that in writing to send to the credit reporting agencies.
To even begin improving your credit you will need to lower the balance owed on them as soon as possible. No matter what the balances are on your credit cards, pay down the highest interest rate cards first. Doing so shows your lenders that you are responsible.
Make sure that you always read your credit card statement entirely. Ensure that all of the listed charges are purchases that you made, keeping an eye out for fraudulent charges. You are the person responsible for checking that there are no errors.
Credit Score Improvement
Find a legitimate credit score improvement agency to work with. Unfortunately, the credit score repair business does have a significant number of companies that are not reputable. Slimy operators are quite common, so beware of credit score improvement scams. Take the time to read reviews of different agencies. This will allow you to find an honest one to work with.
Lenders are not likely to include the statement in their decision process. The action of making a statement about your negative history will work against you as it highlight your mistakes rather than downplaying them.
If you are having a lot of trouble with your credit, consider locking up your credit cards for a while. Purchase with cash. When you do use a credit card, pay off the balance in full each month.
Good credit starts with rebuilding. Utilizing prepaid credit cards allows you to improve your credit score with no concerns about late payments or negative information ruining your credit report. This approach will indicate to others that you are serious about taking responsibility for your financial future.
You should have noticed that the preceding tips have a common theme–they are mostly based on common sense. Following these simple steps and credit improvement will no longer be a distant dream.