With the high prices of food and gasoline in the nation today, it’s incredibly easy to fall behind on your bills. Once you fall behind just a little bit, things begin to snowball out of control for even the most responsible people. So if you’re one of the millions currently struggling with bad credit, you need to read this article.
Consider hiring an expert in credit repair to review your credit report. Some of the collections accounts on a report can be incorrect or duplicates of each other that we may miss. A professional will be able to spot compliance problems and other issues that when confronted can give your FICO score a significant boost.
Use a process of disputing and documenting your efforts in repairing your credit file. Erroneous reports can be the most difficult to remove from your history without following the proper steps. It is important to dispute a bad report, however, it is just as important to make a documented log on your contact and dispute efforts.
Keep your credit card balances low. having a high credit limit on your card can seem like you’ve won the lottery, but using that entire limit will lower your score. Try to keep balances at a 50% maximum. 30% is more of a prime target. By doing this you are showing that you can handle your credit well, and that you don’t need every dollar that has been extended to you.
An important tip to consider when working to repair your credit is that you should organize yourself. This is important because if you are serious about fixing your credit, it is imperative that you establish goals and lay out how you are going to accomplish those specific goals.
If you are in serious credit card debt and are trying to improve your credit score, get rid of all of your credit cards except one. This allows you to streamline the process of paying your monthly bill and prevents you from charging more onto cards that already have high balances.
If you are transferring large balances from one card to another – to avoid hurting your credit score and avoid interest charges – be sure to close each previous card as you pay it off. Having numerous open lines of credit will hurt your score and negate any benefit you might receive from transferring the balances.
When trying to repair your credit it is important not to miss any more of your monthly credit card payments. You will never be able to truly repair your credit if you do that because this missed payment will go on your credit report and stay there for at least seven years.
Before you purchase anything, you should always look for free information or see if you can get it for free. For example, if you want your credit report, you could pay and get a copy, or you could get it for free. All 3 of the major credit bureaus are required to allow consumers one free credit report a year.
Help repair your credit by using a pre-paid credit or debit card. Unlike traditional credit cards which actually loan you money, the pre-paid card uses only money you have loaded onto it. This kind of credit card improves credit because there is no debt, or late payments. You can only spend what you have!
There are scams that offer to help you create a new credit file. It can be tempting to think of leaving your bad credit behind and starting over. But creating new credit files is considered credit fraud and is illegal! Be careful not to fall for this type of scam!
A good credit score is a must if you would like to buy a home or car. You are eligible for the best interest rate deals if your credit is good. In order to ensure your credit stays where you want it, be sure to monitor it periodically, through the standard credit agencies.
Lowering your debt limit will increase your credit score. Try to get to at least 35% of your overall debt to income. If you have more debt than that your credit score is going to fall. Use your income tax refund to pay off some of that credit to open the door to a better score.
Request and review your credit report from all three major bureaus at least once per year. Legally, you are entitled to a free copy each year whether you are applying for credit or not. Because information providers submit data throughout the year, reviewing your reports annually helps you stay on top of your reports and correct any incorrect information as soon as possible.
One of the first things you need to do when you start the credit repair process is to order your credit report from the three major credit reporting agencies. If there is incorrect information on your reports, it can hurt your credit rating. Once you remove the incorrect information, you may see a jump in your scores.
A great way to repair your credit is to hire a credit review company. These companies are experts in the industry and are well-versed in knowing what to look for and how to go about fixing the problem. Once a review is complete, they will set you up with a sound financial plan that can help get your shaky financial situation back on track.
Don’t close all of your credit accounts after you realize your financial problems and start working on repairing your credit. You must have at least one or two accounts in good standing (no debt owed) to keep your credit scores high, so maintain them as long as you’re able to pay any interest they accrue.
The odds are great that no one ever explained to you the dangers of bad credit, especially not the creditors themselves. But ignorance is no excuse here. You have bad credit, now you have to deal with it. Using what you learned here to your advantage, is a great way to repair your credit score and to permanently fix your rating.