So many people have poor credit these days because of the bad economy, lay offs, and increased cost of everyday living expenses. Fortunately, these tips will help you build your credit score.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.
Lower Interest Rates
When you have better credit, you will be offered lower interest rates on loans and credit cards. Lower interest rates make it much easier and quicker to pay off balances. Obtaining lower interest rates will make it easier for you to manage your credit, which in turn will improve your credit rating.
You can dispute inflated interest rates if you are being charged more than you should be. You may be able to challenge an interest rate that is extremely high. On the other hand, you’re likely bound by a contractual agreement to pay any interest charged by lenders. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
If credit repair is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. Negative entries that are otherwise accurate will stay on your credit report for a minimum of seven years. However, information that is not correct can be removed.
It is essential to pay all of your bills if you are looking to repair your credit. Not only must bills be paid, but they must also be paid in full and in a timely manner. Your credit rating can improve almost immediately when you pay off past due bills.
Contact the credit card company and ask to get your card limit lowered. This will prevent overextending yourself and lets the company know about your responsible borrowing habits. You could get credit easier in the future.
Before you decide to go through with a debt settlement, you should be sure you know how it will affect your credit. There are methods that are going to be less damaging than another, and all should be researched before you enter an agreement with a creditor. Some creditors have no concern over how your credit score can be affected by entering into certain agreements. These people just want your money.
Dispute any errors that you find on any of your credit reports. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Your letter should be sent with a request for return receipt, so you can have a record that it was received by the reporting agency.
If you have bad credit, have your credit cards merged into one single account. You can transfer all of your balances to one credit card, ensuring you choose the one with the lowest interest rate. By doing this, you can concentrate on a single credit card payment, as opposed to a lot of smaller ones each month.
Always examine your monthly credit card bill to make sure everything is accurate. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
If you are able to successfully negotiate a payment schedule for a debt, it is important to request a copy of the agreement in writing. This is the only way that you have of protecting yourself. Once you make the final payment, get a statement that verifies that the debt has been satisfied and send it to the various credit reporting agencies.
Paying the balances of your cards as fast as you can will help your credit score. First work on the cards with the steepest balances or interest rates. This will show responsibility to creditors.
Credit Card Statements
Take the time to carefully go over all your credit card statements. 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.
Debt collectors are an intimidating and stressful part of dealing with bad credit. Cease and desist documents can be used to hold back collection agencies, but only to stop harassment. Even though these letters will stop the phone calls from collection agencies, the individual is still responsible for paying the disputed debt.
A good way to repair your credit is to begin to build it back up. Utilizing prepaid credit cards allows you to improve your credit score with no concerns about late payments or negative information ruining your credit report. Potential lenders will see this as a positive thing as it will show you are a responsible person.
Opening too many lines of credit negatively affects your credit score. Avoid obtaining checkout credit cards that offer huge discounts. Once you open a new credit card, your credit score will become lower.
Use these tips to establish a plan of action for your credit score. Don’t let poor credit affect your life any longer. Use the tips presented here to repair you score and your overall financial health.