Are credit problems holding you back? In a tough economy, most people see their credit score go down. There are, however, ways to better it, so be sure to read these tips to repair it.
If you want to fix your credit, you must first conjure a workable plan that you can stick to. Real changes come from commitment to healthy spending habits. Be sure to buy only the things that you need. Ask yourself if a certain purchase is both necessary and affordable. Buy the item if your answer to this question is “yes”.
When your credit is so bad that you can’t get a ‘regular’ credit card, a secured one will help you to repair your credit. 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. Using this new credit card in a responsible manner will help to build back up your good credit rating.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. This information can stay on your record for about seven years. If there is incorrect, negative information, you can get it removed.
If you find any errors in your credit reports, you should dispute them. Gather your support documents, make a list of the errors, and compose a letter to pertinent agencies. Send any correspondence by recorded mail to ensure proof of receipt by the agency.
Check your credit card statement each month and make sure there aren’t any discrepancies. If you spot any mistakes, contact the credit company right away to keep them from reporting the mistakes.
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 is the only way that you have of protecting yourself. After you have paid your debt, request appropriate documentation that confirms your zero balance.
Do not file for bankruptcy. Filing bankruptcy negative effects your credit score for 10 years. Although it sounds like an easy way to get rid of debt, it will affect your life for a significant amount of time. Filing for bankruptcy will make it very difficult for you to qualify for credit in the future.
Comb through all of the bills that you get! Take a second look to make sure that you are being charged only for what you actually purchased. It is solely your responsibility to be sure that everything is correct.
There are many credit score repair agencies advertised; you must check with places like the Better Business Bureau to make sure that you deal with a reputable one. The credit restoration business has a lot of unfair and shady companies. Some people have turned over all of their financial information to people who turned out to be scam artists, and they wound up in worse shape than before they started. You can separate the scam artists from the good agencies by relying on user reviews found online.
Avoid frustration about a low credit score. They can stop your credit from falling any further, and get you back on the road to recovery.
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