There are many downfalls to having bad credit, including preventing you from getting a loan approval, or leasing a car. There are a multitude of reasons your credit score can be negatively affected, from late fees to not paying bills at all will have an impact. If you need to improve your credit rating, here are a few tips to help you start.
If you want to fix your credit, you must first conjure a workable plan that you can stick to. You must be dedicated to making some significant changes in the way you spend your money. Just buy what you need, and forget unnecessary purchases. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. 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.
Paying your bills is something you need to do to repair your credit. Pay these bills on time, and make sure you pay the full amounts owed. Your credit score starts to improve immediately upon paying off some of your past due bills.
Never hire a credit counseling company without doing some research, so as to ensure they are a reputable organization. Some credit counselors offer real help while others have more dubious things in mind. You’ll find that other ones are just scams. Consumers should always check to see if a credit counselor is not a scam before deciding to use them.
Find out how the process will affect your credit rating before you agree to any debt settlement agreements. Research all of your options, make an informed decision about the method you chose, and only then should you agree to the settlement. They are just out to get their money and do not care how that effects your credit score.
If you are trying to repair your credit, check all of your negative reports very carefully. The item may be essentially correct, but there may be an error someplace. If the date or amount, or some other thing is incorrect it may be possible to get the entire item removed.
Joining a credit union is beneficial if you want to make your credit score better but cannot get new credit. Credit unions focus more on the local situation instead of the national one, and may provide more options or rates that are more favorable than those of a larger bank.
Dispute every error you identify on your credit report. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Ask for a return receipt so that you can prove that the agency got your package.
Check your credit card statement each month and make sure there aren’t any discrepancies. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
It is difficult to just forget about negative reports, but writing a statement is useless. It is possible that this can be detrimental by drawing closer scrutiny to your report.
Debt collectors hounding you can be very stressful. A consumer had the option of making use of cease and desist statements to persuade collection agencies, but remember that C&D statements only prevent them from harassing you. Remember, even when the debt collectors stop annoying you by phone, your obligation to pay what you owe is not alleviated.
When attempting to fix your credit score, exercise caution when it comes to attorneys and legal teams that advertise instant repair of credit. Predatory lawyers have begun to prey on people with credit problems; they charge outrageous fees to repair credit. Investigate any lawyer thoroughly before contacting them for credit assistance.
Sometimes you have a large number of outstanding credit bills that need your attention, overwhelming you. Spread your money among your creditors so that they each get a part of what funds are available. Making payments, even just minimum ones, will prevent your debts from going into collection.
Opening too many lines of credit negatively affects your credit score. Store credit cards can be tempting as they often offer discounts to you if you open one but they should be avoided so as not to clutter your credit report. If you fall for the temptation, your credit score will drop when opening that new card.
Anyone who hopes to get a loan or may one day be involved with their children’s college loans, should pay attention to their credit score. It is possible to fix your credit situation. This is true even when you are carrying debt.