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. Don’t despair, because there are ways to get things back on track.
You can get better interest rates on credit cards and loans when you have a good credit score. Lower interest rates mean lower payments, which allows you to pay off debt faster. It’s important to look for a strong credit offer with competitive rates; it will make paying off your debt and keeping a strong credit score much easier.
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. On the other hand, you’re likely bound by a contractual agreement to pay any interest charged by lenders. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
When you are trying to fix your credit record, call your creditors and make payment arrangements that will benefit both of you. If you do this you will not go into debt more and make your situation worse than it was. You can do this by speaking with them and asking to change the monthly charges or due date.
Give your credit card company a call and ask them to lower the limit on your credit card. This helps you from overspending and shows that you want to borrow responsibly and it will help you get credit easier in the future.
Before you agree to settle your debt, you need to know how your credit will stand afterwards. Some settlement agreements can actually be bad for your credit score, so be wary and do your homework. Debt settlers are more interested in their money than your credit rating.
Credit unions are an option for those who have run out of options when trying to find a line of credit to boost their score. Local credit unions might have different credit products than national banks, because they can focus on local market conditions.
Too many credit cards is a common cause of financial strain, so close all of your accounts aside from one. Then, try to arrange payments or transfer your balances to the one account you left open. Doing so will allow you to pay off one individual debt rather than a multitude of lesser balances.
You should look at your credit card bill every month to make sure it is correct. If there are, you will need to contact the company immediately to avoid them reporting this to a credit reporting agency,
Any time you establish any payment plan with any creditor, make sure you get it in writing. If the creditor tries to change the agreement or if it the company is sold to someone else, you will have documentation to support your case. After you have paid off your debt, send proof of this to the major credit agencies.
Even though mending your credit can seem very overwhelming at first, if you apply some hard work and good advice, your credit can be repaired. Take the advice that has been provided in this article to start making positive steps toward better credit.