If you can’t sleep at night because of bad credit, it’s time to take action. The following advice will help in the path to getting your credit back on track.
The first step to repairing your credit is paying what you owe. However, it’s not enough to just pay your bills; you need to make your payments on time and in full. As soon as you start paying off your bills so that they are not late, your credit score will immediately start going up.
Work with the companies to whom you owe money to get your debt back under control. This prevents you from sinking further into debt or further damaging your credit score. Call them and see if you can change the payment terms. They may be willing to change the actual payment or move the due date.
Joining a credit union is a great way to build your credit if you are having a difficult time doing so elsewhere. You may find that the credit union has more options and better rates to offer you than banks will.
Dispute any errors that you find on any of your credit reports. You should compose a letter to the agencies that have made the errors, and provide proof that you are correct. Ask for a return receipt so that you can prove that the agency got your package.
Close all your credit cards except for one as a means of repairing your credit. Making one monthly payment will be easier than paying off different bills. By doing this, you can work towards completely paying off one credit card with a large debt, rather than working piecemeal with many smaller debts.
Take a look at credit card bills to make sure that every item is one you have charged. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
If you and a creditor agree on a payment plan, make sure the agreement is committed to paper. This is a great way to have documentation of the plan if the creditor changes their mind or the company ownership gets changed. Once you make the final payment, get a statement that verifies that the debt has been satisfied and send it to the various credit reporting agencies.
Begin the process of credit repair by trying to pay down your credit card balances as fast as you can. It is a toss up as far as which cards are best to pay off first – some choose ones with the highest interest rate, others choose the card with the lowest balance. This helps creditors realize that you are using credit cards wisely.
Make sure to fully read every single credit card statement that you get. Really analyze the purchases on your card to make sure you are not receiving any errant charges for items you never purchased. It is solely your responsibility to be sure that everything is correct.
For a better credit rating, lower the balances on your revolving accounts. Just lowering your balances can raise your credit score. When balances are and increments of twenty percent of your total available balance on that account, the FICO system will take note.
When working with a credit repair agency, it is imperative to find one that is legitimate. There are far too many of these companies that are quite simply fraudulent. Some people have gotten scammed by these credit agencies. Check online reviews about the company, the Better Business Bureau, and even the State Attorney General’s office to find out what their reputation is before signing anything or giving them any money or account numbers.
Lenders do not care about the reason you have negative information on your credit report. Having some positive credit history is the only way that negative reports can be counteracted when lenders are analyzing your credit liability. The statement will only draw further attention to negative reports on your credit history.
Put your credit cards on lock down and don’t use them at all, if possible. Pay for things with cash whenever possible. If you have no choice but to use a credit card, always pay the balance in full each month.
This information should make it clear that there is a way back to the flower-filled fields of good credit. You can repair your credit and be less intimidated by it. By learning from these tips, you can have the credit report of your dreams.