You need not suffer the effects of bad credit, no matter how you wound up with credit problems. Whether you have been personally damaged by economic conditions, victimized by dishonest lenders or even were simply too carefree in your spending, you deserve better credit. Fortunately, there are actions you can partake to reverse this.
You may be able to get a secured credit card even if your poor credit has prevented you from getting other credit cards. These accounts are much easier to get as you will have to fund the new account ahead of time with a deposit to cover any purchases. Even though this card will be secured by your own money, you will make payments and manage it as if it were unsecured. This will improve your credit as you show yourself able to make the payments on time.
If your credit card is carrying more than half of its credit limit, your first priority should be paying it down until it is below 50%. Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.
By keeping your credit score low, you can cut back on your interest rate. Lower interest rates make paying bills easier, and prevents you from incurring debt. The key to paid off credit is to find a great offer and a competitive rate so that you can pay off your debt and get a better credit score.
Try an installment account to get a better credit score and make some money. Choose an installment account you can afford, since you will have to leave a certain amount of money on it at all times. By successfully handling the installment account, you will help to improve your credit rating.
Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. However, the contract you signed ensured that you agreed to pay off your interest. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. You have to wait for seven years before negative data can come off your record. It is possible to have erroneous information removed from your report, however.
Credit restoration requires that you begin paying your bills. Not only must bills be paid, but they must also be paid in full and in a timely manner. You will immediately see changes in your credit score when you begin to pay off your debts, especially those that are active.
Repairing the credit you damaged might seem overwhelming, but you can fix your credit with effort and the right kind of information. With the tips above, you are better prepared to take action and get your credit situation back where it should be.