You need not suffer the effects of bad credit, no matter how you wound up with credit problems. Whether you have been personally damaged by economic conditions, victimized by dishonest lenders or even were simply too carefree in your spending, you deserve better credit. The following tips will help you take steps to begin to repair your credit.
Any credit cards that have balances over 50% of your limit should be paid off until they are less than 50% of your limit. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
You can lower your debt by refusing to acknowledge the part of your debt that has been accrued by significantly high interest rates. An interest rate that is shockingly high can possibly be ruled as illegal in certain cases. Your initial agreement likely included a commitment to pay interest. You need to be able to prove the interest rates are too high if you want to sue your lenders.
If someone promises you to improve your score by changing your factual history, this is a scam. Negative entries that are otherwise accurate will stay on your credit report for a minimum of seven years. Stay mindful, however, of the fact that false information can be stricken.
Make sure you thoroughly research into any credit repair agency or counselor before you do business with them. While there are lots of counselors with your best interest at heart, there are others who just want your money. Some will try to cheat you. Knowledgeable purchasers will always make sure that the credit counselor in question is legitimate before hiring.
Don’t get involved in anything that could get you arrested. Sites may act like you can create new credit lines and tell you how to do it. Do not attempt this because it’s illegal; you will not be able to avoid getting caught. The criminal charges that you face will be very expensive, and you may also have to serve prison time if found guilty.
If you notice credit reporting errors, always file a dispute. Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. Ask for a return receipt so that you can prove that the agency got your package.
Stop spending more money than you have available. If you’ve been living outside your means, then get ready for a reality check. Easy access to credit makes it simple for many people to buy expensive items that they do not have the money for, and a lot of individuals are dealing with the consequences of those purchases. Instead of spending more than you can afford, take a long hard look at your income and expenses, and decide what you can really afford to spend.
Always get a plan in writing if you are going to do a payment plan that deals with creditors. Having documentation is important for your records but also protects you in case a creditor changes their mind. After you have paid off your debt, send proof of this to the major credit agencies.
Make sure to fully read every single credit card statement that you get. Make sure that all of your fees and charges are correct and that there are not any items that were not authorized by you. You are the only one that can verify if everything on there is the way it should be.
Credit Score Improvement
If you want to repair your credit, take the time to find a reputable repair agency. The credit score improvement industry does have its fair share of agencies that do not live up to their promises. A fair number of people have been scammed by these unethical credit score improvement companies. If you read enough reviews, you can find out which ones are good and which are bad.
Restoring your credit rating looks at first like an uphill battle, but with sound effort and the right advice, that battle can be won. The advice offered in this article can help to get you back on track to repairing your credit.