Finance Specials

January 20, 2013

Not Sure How To Repair Your Credit? Try These Tips!

Do not get carried away when someone give you a credit card, pay your bills! If you’re one of the many people with credit problems, read on for some ways to improve your situation.

TIP! You can easily get a mortgage if you have a high credit score. When your mortgage is paid in full, you will be rewarded with increased scores on your credit file.

You can dispute inflated interest rates if you are being charged more than you should be. There are laws that protect you from creditors that charge exorbitant interest rates. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. Should you sue any creditors, it is important to push the fact that the interest rates are outrageously high.

You may get into the situation that you have multiple debts and you just don’t have enough money to pay them all. Make the minimum payment on each of your debts and use any leftover money to concentrate on paying off the highest interest debt. Even if it’s only minimum payments, send as much as you can to each creditor in order to avoid them sending your account off to collection agencies.

TIP! Learn more about debt consolidation so that you can get help with your credit repair. Debt consolidation can make it easier for you to pay off creditors quickly, and this could help to repair your credit score sooner rather than later.

Be truthful with collectors, and find out if they are willing to work with you. Tell the debt collector the amount that you can pay them, and when they can expect the payment. Keep in mind that many collectors will negotiate with you.

Credit counseling can help you start to build your credit back up. They can teach you how to get rid of all you owe and still live each month. They’ll help you learn to rely on credit cards less, if at all, and they will teach you how to handle the outstanding debts you have already incurred.

Existing Debt

The best way to begin a credit improvement project is to pay off outstanding debt, and pay future bills on time. It can be difficult to have existing debt as it hurts your credit score. Determine your budget and focus on reducing your debt as quickly as possible. Your credit score will be improved if you do not have existing debt.

TIP! There are secured credit cards available if your credit rating is too low to open up a regular credit card account. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments.

If your credit repair effort is stagnating, one way to get it back on track might be to try debt consolidation. If you can consolidate your debt, you might find it easier to keep track of payments and budget accordingly. It will also be easier to pay that bill on time and to repair your credit.

Bankruptcy should be a last resort. Bankruptcy can make getting credit almost impossible for many years. Though it may seem necessary at the time, you should weigh the costs over the next ten years before you decide to go through with the filing. Bankruptcy destroys your ability to get any sort of loan for at least a few years, so don’t file unless you have to.

TIP! Threats are illegal. If a collection agency is treating you roughly, you could sue them.

Come up with a way to pay off any existing unpaid debts. While this will not remove the debts from your credit report completely, they will be showing as paid and no longer negatively affect your rating.

Your credit rating will also suffer from opening new lines of credit. Don’t be tempted to get a new credit card even if it promises you discounts at stores. As soon as you open a new credit account, your credit score drops immediately.

TIP! Check your credit card statement each month and make sure there aren’t any discrepancies. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.

Fixing your damaged credit may seem like an overwhelming task in the beginning, but with a bit of work and a bit of guidance, you can turn things around and get your credit back on track. With the advice you were given in the above article, you can get to work on improving your credit score today.

Be Sociable, Share!

Filed under Credit Repair by

Permalink Print

Finance Resources