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. Thankfully, there are methods in the below article that can help you mend this problem.
If your credit is such that you cannot get a new card to help repair it, apply for a secured one. These are extremely easy to qualify for. A secured credit card looks just like a regular card, and works like a regular card, but you have to have the necessary money in an account to guarantee payment. If you use a credit card well, your credit rating will begin rising.
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.
Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. Avoid collection to improve your credit score. Talk to your credit card company about changing the terms of your monthly payment.
Make sure you research a credit counselor before you visit them. Many counselors are honest and helpful, but others may be less interested in actually helping you. There are many scams out there. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.
Don’t do anything illegal. Don’t buy into scams that suggest you create new credit files. This is illegal and you’ll get caught. Not only can legal fees add up, but you could end up in jail.
Contact the credit card company and ask to get your card limit lowered. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.
Don’t sign a debt settlement contract until you know what impact it is going to have on your credit score. 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. The creditor does not care what happens to your credit score, as long as they get their money.
When you are attempting to improve your credit score, carefully comb over your credit reports for negative information. 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.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency.
Nursing your credit back to good health is not as hard as it looks at first, especially when you are willing to make a persistent effort and listen to good advice. Use the information gleaned from this article to fix your credit and improve your life.