Having bad credit is an extremely annoying issue to deal with. It can make you feel like you are in debtors’ prison with no hope of escape. There are a few things you can do to improve and protect your credit.
You may be able to get a secured credit card even if your poor credit has prevented you from getting other credit cards. This card will be more than likely be granted to you, however you must fund the account ahead of your purchases as a sort of “insurance” to the bank that your debts will be paid. If you use a credit card responsibly, you will go a long way in repairing your credit.
You will be able to get a lower interest rate if you keep your personal credit score low. A lower interest rate means lower monthly payments, and less time paying off your debt. 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. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. You can quickly improve your score by successfully managing these accounts.
If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates. Creditors are skirting aspects of the law when they hit you with high interest rates. You did however sign a contract that agrees you will pay off all interests as well as the debt. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. If the information is correct, it will remain as part of your report, in most cases, for seven years. It is possible, however, to remove errant information.
You need to work with the companies from whom you have credit cards. If you do this you’ll find that your debt doesn’t increase and your credit is improved. Contact your credit card company and request to change your scheduled due date or interest rate.
Find out how your debt settlement contract will make your credit score look. Certain methods of settling your debts have less detrimental effects on your credit history. Some of these creditors are only concerned about getting their money, and not how it will affect your credit.
Try joining a credit score if you’re still struggling to boost your credit rating by opening new lines of credit. Credit unions often offer better interest and more options than chain banks do.
Officially dispute any errors you find on your credit reports. Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter.
The first step in credit score repair is to close all but one of your credit accounts as soon as possible. Call your credit card company and try to work out a repayment plan, or transfer the balances of multiple cards to one lower interest card. You can pay down one credit card in full, rather than chipping away at many.
This simple advice can aid you in repairing your credit issues and help you keep your credit in good shape. Educating yourself about credit and how it works is an important investment that will pay off in the future.