Does Your Credit Report Need Some Help?

Home  ›  Improve Credit Score  ›  Does Your Credit Report Need Some Help?

It can be stressful to deal with having bad credit. When you are dealing with bad choices of your past, it can be frustrating. It is time to take action and rebuild your credit score. Keep reading for more helpful tips.

If you are unable to get a new card because of your bad credit, try to apply for secured cards. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. Responsible use of any credit card can help your credit rating. However, never forget that irresponsible use will get you in trouble every time.

Interest Rates

The first step in repairing your credit is figuring out a plan that works for you, and sticking with it. You must make a commitment to making changes on how you spend money. Don’t buy anything unless you absolutely need it. You should only make a purchase if it is necessary and it fits in your budget.

TIP! If you are unable to get an unsecured credit card due to your low credit rating, consider a secured card to help reestablish your rating. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay.

You can keep your interest rates lower by working to keep your credit score as high as possible. This can help lower your monthly payments, and help you pay them off quicker. Getting better interest rates leads to an easily maintainable good credit score.

If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. In most cases, creditors are somewhat limited in the amount of interest they can charge. However, you signed a contract agreeing to pay off interests. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.

Credit Counselor

Keep your credit card balances below 50 percent of your 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.

TIP! If someone promises you to improve your score by changing your factual history, this is a scam. Negative entries on your record stick around for a term of seven years at a minimum, even if you take care of the debts involved.

Make sure you do your research before deciding to go with a particular credit counselor. Many companies are legitimate and hold your best interests as a priority, but some are outright scams. Other counselors are nothing more than scam artists. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.

Call and request lower limits on your cards from the credit card companies. It will help to keep spending under control, and also sends a positive message to potential lenders. This means you might have a better opportunity of obtaining necessary loans in the future.

Make sure you review all of the negative marks against you on your credit report. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.

Contact your creditors and see if you can get them to lower your overall credit limit. Not only can this tactic prevent you from getting yourself in over your head with debt, but it can also imply that you are responsible to those companies and to any future companies.

TIP! Check any negative items on your reports carefully when you begin fixing your credit. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.

Joining a credit union may be helpful if you want to work on improving your credit score and are finding it difficult to access new credit. Credit unions have opportunities that are better than other places and are usually local.

Try not to file for bankruptcy. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. While getting rid of your debts all in one go seems like an excellent idea, your credit will be affected by it for a long time to come. Bankruptcy destroys your ability to get any sort of loan for at least a few years, so don’t file unless you have to.

Pay off any balances as soon as you can. Work on paying off credit cards that have the highest interest rates or high balances. By doing this, you will show your creditors that you are trustworthy with your credit.

If you find inaccuracies on your credit report, make sure to dispute them. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. 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.

TIP! Look through your credit card statement each month and make sure that it is correct. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.

Work with a credible credit improvement service. As with most industries nowadays, there are a number of shady companies offering credit score improvement. It is sad to see how many people have been taken advantage of by credit repair scams. Be a smart consumer and educate yourself by researching user reviews online to find a good agency.

Negative Reports

It is difficult to just forget about negative reports, but writing a statement is useless. The statement will only draw further attention to negative reports on your credit history.

Always get a plan in writing if you are going to do a payment plan that deals with creditors. You want documentation to back yourself up so there will be no problems in the future, and if the company owner changes you will have more of a chance of keeping your plan. As soon as you get it paid off, have that in writing so you are able to inform the credit reporting agencies.

TIP! Do everything possible to avoid bankruptcy. It can adversely affect your credit for up to 10 years.

Avoid using your credit cards at all. Pay for things with cash whenever possible. If you have to make a purchase with your card, pay it off right away.

One of the biggest stressors can be bad dealings with debt collection agencies. Consumers can try to use a cease and desist letter if an agency is harassing them, but their usefulness is limited. These letters stop collection agencies that harassing debtors, but they don’t erase liability for the debt itself.

A terrible credit situation would be having many different debts you can’t afford to pay back. Divide your money between your creditors so every one gets paid. Even if all you’re making is minimum payments, this will keep you out of collections.

For a better credit rating, lower the balances on your revolving accounts. You can up your credit rating just by paying down your balances. The FICO system will make a note when the balances are at 20, 40, 60, 80 and 100 percent of the total credit available.

TIP! If you go with a repair company to improve your credit score, be sure it is legitimate. There are a number of shady operators in the credit repair business that can cost you money and do nothing for you.

In order to start the process of credit score improvement, it is wise to seek new credit as a way to re-establish yourself. Prepaid credit cards can help you to break bad spending and repayment habits. A potential lender will see this as a responsible move on your part, showing that you are credit worthy.

It is illegal for debt collectors or companies to threaten you. If this happens, be sure to document it. You need to know what the laws are that protect your rights as a consumer.

Using the tips from this article will make a dramatic improvement towards your credit score. Consistency is crucial with this process, so be sure to stay up to date with your obligations. It is very feasible and possible to rebuild your credit, so just get to it!

Debt collectors hounding you can be very stressful. Remember that when dealing with harassing collection agencies, consumers have the option to issue a cease and desist letter to stop the harassment. Letters such as these prevent calls from collections agencies, but the consumer must still pay the debts under dispute.

TIP! When repairing your score, be cautious of law offices and lawyers that promise fixes for credit. Some lawyers have chosen to take advantage of the people who have bad credit by charging a lot of money for things that are useless to their credit or are illegal.