Do not get carried away when someone give you a credit card, pay your bills! The following tips will help you take steps to begin to repair your credit.

TIP! If you are unable to get a new card because of your bad credit, try to apply for secured cards. The account is funded in advance, which provides the lender with a level of insurance against unpaid debts.

Secured credit cards are an effective way for you to start rebuilding your credit. Secured credit card applications have a high rate of approval because you must fund a security deposit against your credit limit. A responsibly used new credit card will begin healing your credit score.

Interest Rate

TIP! Having a good record allow you to qualify for things like a home mortgage. Paying down your mortgage improves your score as well.

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 legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. Although, in reality, you did agree in advance to pay any interest charges incurred. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.

TIP! If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. Open an installment account that you can pay for and make sure to keep an affordable monthly minimum on it.

When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. This information can stay on your record for about seven years. It is true, however, that you can remove inaccurate information from your report, but you do not need the assistance of a consultant to do so.

Due Date

TIP! Do not do things which could cause you to go to jail. Sites may act like you can create new credit lines and tell you how to do it.

You need to work with the companies from whom you have credit cards. You should contact the company and request a lower interest rate or a due date change if necessary. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.

TIP! Contact your creditors to request a reduction in your credit line. This will prevent you from spending too much that you do not have.

Before you choose a credit counseling agency, find out more about them. Many counselors are honest and helpful, but others may be less interested in actually helping you. You’ll find that other ones are just scams. To help protect yourself from fraud, investigate any credit counselors. One way to check an agency out is to check with the Better Business Bureau.

TIP! Try not to file bankruptcy if at all possible. It is noted on someone’s credit report for 10 years.

Ask credit companies to lower all of your card limits. Not only can this tactic prevent you from getting yourself in over your head with debt, but it can also imply that you are responsible to those companies and to any future companies.

Credit Union

TIP! lenders will not read these statements when looking at your credit report. It can actually backfire.

One way to increase your credit score is to become a member at a credit union. You may find that the credit union has more options and better rates to offer you than banks will.

TIP! Having to deal with a collection agency can be extremely stressful. Debtors can stop harassment by collection agencies with cease and desist notices, but know that this is all they do.

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. Apply the tips you learned here and get started on your way to good credit.