Whether you got your credit cards on your college campus, went shopping too many times or suffered from the bad economy, you’ve probably damaged your credit. There are some things you can do to turn your credit around.
The first step in repairing your credit is figuring out a plan that works for you, and sticking with it. You must be dedicated to making some significant changes in the way you spend your money. Limit your purchases only to things that are absolutely necessary. Look at your purchases closely. If you cannot afford something, and you do not need it, do not buy it.
If you are unable to get a new card because of your bad credit, try to apply for secured cards. Anyone can get one, but you must load money onto the card as a type of “collateral”. By using a new card responsibly, your credit rating will start to increase.
You may be able to get a secured credit card even if your poor credit has prevented you from getting other credit cards. This card will be more than likely be granted to you, however you must fund the account ahead of your purchases as a sort of “insurance” to the bank that your debts will be paid. Even though this card will be secured by your own money, you will make payments and manage it as if it were unsecured. This will improve your credit as you show yourself able to make the payments on time.
Credit Limit
Pay down the balance on any credit card that is 50% or more of the 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.
Your low credit score will cut your interest rates. A lower interest rate means lower monthly payments, and less time paying off your debt. Getting better interest rates leads to an easily maintainable good credit score.
Try opening an installment account. With this sort of an account, you need to keep a minimum. Handling an installment account correctly will help you improve your credit score in a short period of time.
Having a good record allow you to qualify for things like a home mortgage. Making mortgage payments in a timely manner helps raise your credit score even more. Home ownership also means you have assets that you can rely on to increase your credit score. This is helpful in case you want to borrow money.
Interest Charges
If your debt includes large amounts for interest charges contact the debt collector and see whether you can pay the original debt and avoid some of the additional interest charges. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. However, when you signed up for the line of credit you also agreed to pay the interest. The only way you are legally able to sue the creditors is if you are able to prove that your interest rates are much too high.
Negative-but-correct information cannot be removed from your credit report, so be wary of promises from unscrupulous companies who promise to remove it from the credit reporting agencies. Negative info stays on your history for seven years! You can, however, succeed at having incorrect information erased from your credit reports.
Negative-but-correct information cannot be removed from your credit report, so be wary of promises from unscrupulous companies who promise to remove it from the credit reporting agencies. It seems unfair, but accurate negative information will stick around for seven years. If the information is an error, the credit report can be corrected.
Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. When you work with company you are not working against anyone, including yourself. This will help prevent furthering yourself into debt. Do not be afraid to call your credit card company and ask if you can make changes to your due date or your minimum payment amounts.
Make sure you thoroughly research into any credit restoration agency or counselor before you do business with them. There are some counselors that are real, while others are basically scammers. Others are outright scams. A savvy consumer will always do his or her research on any credit counseling service to ensure that the agency is legitimate.
You must pay your bills consistently if you want to repair your credit. You must pay them on time and in full. Your credit rating can improve almost immediately when you pay off past due bills.
With some hard work and guidance, you can easily fix your damaged credit and help receive the rating that you deserve. Utilize the above information to start the journey of improving your credit score.