So many people have poor credit these days because of the bad economy, lay offs, and increased cost of everyday living expenses. Follow these tips if you need a better credit score.
If you are unable to get a new card because of your bad credit, try to apply for secured cards. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. Responsible use of a credit card can help rebuild your credit.
You will be able to get a lower interest rate if you keep your personal credit score low. It will lower your monthly payments, so your debt will be taken care of at a much quicker rate. Getting better interest rates leads to an easily maintainable good credit score.
Opening an installment account can give quite a boost to your credit score. An installment account requires that you make a minimum payment each month. It is imperative that you only take an installment account that is affordable. You can improve your credit rating quicker using this type of account.
Paying off any debts you have that have high interest rates can help you to avoid paying too much. Creditors are skirting aspects of the law when they hit you with high interest rates. However, you have entered into a legal agreement that requires you to pay accrued interest. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
If you are looking to repair your credit, then you should not believe a company if they promise they can remove negative information from the report. Specifically if this information is correct. Unfortunately, negative marks will stay on your record for seven years. It is possible, however, to remove errant information.
Make sure you do your research before deciding to go with a particular credit counselor. Many companies are legitimate and hold your best interests as a priority, but some are outright scams. Other programs, while they sound good, are complete and total scams. A savvy consumer will always do his or her research on any credit counseling service to ensure that the agency is legitimate.
Put the spending brakes on yourself by lowering your credit limit on all of your cards. This will keep you living within your budget, and will show the credit companies that you repay debts. This will allow you to get credit easier in the future.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. 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.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Contact the credit agency in writing, with documentation to support the errors that you are disputing. Make sure that you ask for a return receipt so that you know your letter makes it to its intended destination.
You should look at your credit card bill every month to make sure it is correct. If this is the case, you need to call the company right away to avoid them from reporting it to credit reporting agencies.
Try not to file for bankruptcy. This will have damaging consequences to your credit score for ten years. Bankruptcy may sound great because your debt goes away but there are consequences. Though it may provide some immediate relief, be aware of how it will impact your access to credit in future years.
To increase your credit score lower the amount owed on revolving accounts. Having a lower balance will boost your credit score. The FICO system has a new level for every twenty percentage points of your credit available.
Now that you know how to improve your credit score, why wait? Use this information to prevent your credit rating from falling and to gradually raise it so that you can avoid it affecting your life negatively.