Do you lose sleep over the state of your credit report? By following the tips in this article you can get things back on track, and finally have a credit score that makes you proud.
If your credit history has put you in the position where you are not able to obtain a regular credit card, you should try to get a secured credit card to begin rebuilding your credit. In order to get the card, you will have to fund the account as sort of an insurance that shows the bank your debts are going to be paid. Using this new credit card in a responsible manner will help to build back up your good credit rating.
It’s easy to lower your interest rate by ensuring your credit score is high. This can help lower your monthly payments, and help you pay them off quicker. 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 your debt includes large amounts for interest charges contact the debt collector and see whether you can pay the original debt and avoid some of the additional interest charges. An interest rate that is shockingly high can possibly be ruled as illegal in certain cases. However, the contract you signed ensured that you agreed to pay off your interest. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
Negative-but-correct information cannot be removed from your credit report, so be wary of promises from unscrupulous companies who promise to remove it from the credit reporting agencies. You have to wait for seven years before negative data can come off your record. You can erase information that is incorrect from your credit record.
Before consulting a counselor for credit score improvement, do your research. Some counselors truly want to help you, while others are untrustworthy and have other motives. Others are outright scams. Smart consumers make sure that a credit counselor is legit before starting to exchange any money or sensitive information.
If an action can result in imprisonment, draw the line. Scams abound on the internet that show you how to change your credit file. This is illegal and you will most certainly get caught. Penalties can include large fines and possibly even incarceration.
Anything on your credit report that you feel is inaccurate should be disputed. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.
To rebuild bad credit, it can be a good idea to get rid of your extra credit cards. You should only have one. You will want to either transfer your balances onto the one remaining card or set up payment arrangements, but close the account to new charges. Doing this will allow you to focus on paying off one large credit card bill, instead of several smaller ones.
As you have seen, no longer does your credit does not have to be something that keeps you up at night. You can fix your credit and no longer have it hanging over your head constantly. By the time you finish applying these tips, your credit score will be on its way up.