With unemployment so high and costs of living continuing to rise, it is unsurprising that the average credit score is lower than it has been in some time. Luckily, these tricks and tips can show you how to have a better credit score.
If credit improvement is your goal, create a plan and stick with it. You have to stay focused and committed if you want to make concrete changes to your financial situation. Stick to the essentials, and avoid frivolous purchases at all costs. Ensure that you can afford everything you buy and that you really need it.
When you have better credit, you will be offered lower interest rates on loans and credit cards. Lower interest rates make paying bills easier, and prevents you from incurring debt. Asking for a better deal from your debtors can help you get out of debt and back to achieving a better credit score.
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. Creditors trying to charge more from you than what they originally loaned you plus a reasonable amount of interest are usually willing to negotiate. You did however sign a contract that agrees you will pay off all interests as well as the debt. You can consider suing your creditors if the interest rates are outrageously high.
Credit counselors should always be researched thoroughly before being consulted for credit score improvement. While many counselors are reputable and exist to offer real help, some do have ulterior motives. Some are simply fraudulent and are out to get your money. You should always find out if a credit counselor is the real thing.
Do not involve yourself in illegal activities. There are various online scams that involve creating a fresh credit file. That is illegal and you are going to be caught. The legal proceedings will be costly, and you may even be sent to jail.
Give your credit card company a call and ask them to lower the limit on your credit card. 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.
Make sure you review all of the negative marks against you on your credit report. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.
Use these tips to establish a plan of action for your credit score. Put this advice to work for you immediately to start cleaning up your credit report before your poor credit rating negatively impacts your life any further.