Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. Fortunately, there are quite a few ways that you can remedy your credit situation.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
A lower credit score can get you a lower interest rate. This will make your payments easier and it will enable you to repay your debt a lot quicker. Paying your outstanding balances on time is the best way to keep your credit in check, and to obtain lower interest rates.
Opening an installment account can give quite a boost to your credit score. With an installment account there is a monthly minimum you need to keep, so only open an affordable account. You might see a big improvement in your credit score, if you can handle an installment account responsibly.
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. In most cases, creditors are somewhat limited in the amount of interest they can charge. However, you did sign an agreement 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.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. All information remains on your credit report for a period of seven years or more. It is possible, however, to remove errant information.
Paying your bills is something you need to do to repair your credit. It is key that you pay them on time and in full. Do the best that you can. Once you start paying your past bills off, you will notice an immediate improvement in your credit.
An important tip to consider when working to repair your credit is to work closely with your credit card companies. This will enable you to make sure to keep your credit in good standing and repair any damage that may have been caused. You can even ask for help, such as pushing back the due date of your monthly payments or reducing the interest rate.
You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. There are some counselors that are real, while others are basically scammers. Some are not legitimate. A wise consumer will find out if the credit counselors they deal with are legitimate or not.
Restoring your credit rating looks at first like an uphill battle, but with sound effort and the right advice, that battle can be won. Use what you have read here to get back on track with your credit.