Has your bad credit been giving you problems? In the current economy, it’s not uncommon to see credit scores quickly declining. You can turn things around, though. A good start is to check out these tips to repair your credit rating.
Develop a plan that works if you are in need of credit improvement. Real changes come from commitment to healthy spending habits. Don’t buy anything unless you absolutely need it. Ensure that you can afford everything you buy and that you really need it.
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
If credit repair is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. These bad marks stay on your record for seven years or more. It is possible to have erroneous information removed from your report, however.
Before you hire a credit counselor, make sure that you have done your research. Some credit counselors offer real help while others have more dubious things in mind. There are a lot of people out there that are trying to take advantage of those who are down on their luck. 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.
The first step in repairing your credit involves a thorough and careful check to ensure your credit report doesn’t contain erroneous information. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.
Try joining a credit score if you’re still struggling to boost your credit rating by opening new lines of credit. Credit unions often offer better interest and more options than chain banks do.
Officially dispute any errors you find on your credit reports. You should contact the credit bureaus both online and by certified letter; be sure to include proof of your claims. When you mail your dispute package, be sure to make arrangements for confirmation of receipt. In this way, you will have documentation that your information has been received.
Always examine your monthly credit card bill to make sure everything is accurate. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
If you have been frustrated and felt discouraged about your bad credit score, take these tips and use them to change that. There are a variety of ways to improve your credit rating.