Poor credit is a terrible thing for you to deal with as you journey through life. A bad credit score will make it hard for you to get a loan or apply for housing, among other things. Yet, some simple steps can fix your credit and help you to keep your credit in good standing.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. It seems unfair, but accurate negative information will stick around for seven years. Be aware, however, that incorrect information can indeed be erased from your record.
Be very wary of programs that do not sound legal; chances are they aren't. Scams abound on the internet that show you how to change your credit file. This is illegal and you will most certainly get caught. Taking these short cuts will end up costing you money and could lead to a stay in jail.
You can dispute inflated interest rates if you are being charged more than you should be. In most cases, creditors are somewhat limited in the amount of interest they can charge. However, when you signed up for the line of credit you also agreed to pay the interest. If you're going to try taking your creditors to court, make sure you can prove the interest rates they charged were excessively high.
If your credit has suffered and you are trying to rebuild it, many options are available. Prepaid credit cards are great for this, since you can get improved with a bad credit score, and there's no way to rack up debt and late fees. Doing so indicates to the person lending that you are a responsible person.
Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. You should contact the company and request a lower interest rate or a due date change if necessary. You can do this by speaking with them and asking to change the monthly charges or due date.
If you are unable to make minimum payments, contact the better business bureau for information on a trustworthy credit counseling service. These counselors can often arrange affordable repayment plans to get you out of debt, allowing you to focus on making wise financial decisions in the future. Working with a credit counselor can help you learn to budget your money.
If you are unable to get an unsecured credit card due to your low credit rating, consider a secured card to help reestablish your rating. Most people are able to get this type of card, but you will have to load it up with a prepaid amount of money, as a guarantee that you can pay any charges that you make. If you use a credit card well, your credit rating will begin rising.
Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Draft a letter to reporting agencies disputing negative entries and also submit any available documentation. Your letter should be sent with a request for return receipt, so you can have a record that it was received by the reporting agency.
In order to fix your credit score, you must have a plan that will help you lower your debt and actually make an impact. If you have delinquent debt, your credit score will be affected until you pay it off or seven years pass, whichever comes first. Put a plan in place to reduce your debt as much as you can each month. If you are debt free, it will increase your credit score.
Easy tips, like the ones in this article, will help you repair your credit and keep it healthy in the future. Educating yourself about credit and how it works is an important investment that will pay off in the future.