If you knew how much you owed and who you owed it to, you may have been able to avoided bad debt entirely. Because of this, the time is now to manage your debt and mend your credit. By following the advice in this article, you will be able to improve your credit score.
If you need a credit card to aid in fixing your credit but you cannot obtain one due to the state of your credit, applying for a secured credit card is an option. Anyone can get one, but you must load money onto the card as a type of “collateral”. Limited spending and regular payments can turn a new credit account into a valuable credit repair tool.
Think about getting an installment account to save money and improve your credit score. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. You might see a big improvement in your credit score, if you can handle an installment account responsibly.
If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. There are laws that protect you from creditors that charge exorbitant interest rates. However, you signed a contract agreeing to pay off interests. If you’re going to try taking your creditors to court, make sure you can prove the interest rates they charged were excessively 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. Regardless of their claims, these debts will stay on your report for seven years at a minimum. Stay mindful, however, of the fact that false information can be stricken.
You should consider talking to directly with your creditors when you are trying to improve your credit. If you do this you’ll find that your debt doesn’t increase and your credit is improved. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
Make sure you do your research before deciding to go with a particular credit counselor. While some counselors are legitimate, offering genuinely helpful services, others have ulterior motives. Others are just plain fraudulent. Smart consumers will always check to see that credit counseling agencies are, in fact, legitimate before working with them.
If you see errors on your credit reports, dispute them with the credit agency. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
As this article has spelled out, fixing your credit is not rocket science, and it may be easier to do than you think. But, if you use this easy-to-follow information, you can achieve your ultimate goal.…