If you had kept a record of who you owed money to then perhaps your debt could have been avoided. But it is never too late to put an emergency strategy into action to help get your credit score on the right track. The following advice is easy to follow and can help you repair your credit score.
The first step to repairing your ailing credit is to create a manageable, feasible financial plan. You have to be committed to making real changes to your spending habits. Avoid buying what you don’t need. Ask yourself how necessary each purchase is, and how affordable it is too. If you can’t answer “yes” to each of the questions above, you need to reconsider the purchase.
Secured Credit Card
A secured credit card might be a good option for the person with a poor credit score. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. Using this card responsibly will improve your credit rating over time, and eventually you’ll be able to get a normal credit card again.
You can keep your interest rates lower by working to keep your credit score as high as possible. Lower interest rates mean lower payments, which allows you to pay off debt faster. The key to paid off credit is to find a great offer and a competitive rate so that you can pay off your debt and get a better credit score.
You can lower your debt by refusing to acknowledge the part of your debt that has been accrued by significantly high interest rates. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. On the other hand, you’re likely bound by a contractual agreement to pay any interest charged by lenders. You need to be able to prove the interest rates are too high if you want to sue your lenders.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. Bad marks on your report will not go away for seven years. You can erase information that is incorrect from your credit record.
Always do research before contracting a credit counselor. While there are lots of counselors with your best interest at heart, there are others who just want your money. Others are outright scams. Before you conduct any business with a credit counselor, check into their legitimacy.
Stay cautious and aware of scams online that can lead you to even bigger problems. There are plenty of credit scams that purport to erase your existing credit file and create a new one. This tactic is not legal, and you face serious repercussions if you are caught. The end result of getting caught during the crime could be expensive legal fees and a possibility of time behind bars.
Before you agree to any sort of repayment plan to settle your debts, consider how this will affect your credit score. Some debt settlements are better than others. Do your homework and find out how your score will be impacted before agreeing to anything. The creditor is only interested in receiving the money due, and is not concerned with your credit score.
Take a look at your credit report if you have a bad score. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.
Do not file for bankruptcy. Filing bankruptcy negative effects your credit score for 10 years. You may think that bankruptcy is your only option to rid yourself from debt, however look at your long term financial goals before deciding to file for it. Once you have filed for bankruptcy, it may become very difficult to secure a loan or open a new credit account.
In order to start repairing your credit, you should try to pay down the balances on your credit cards as quickly as possible. Begin by paying down those credit cards that carry the highest interest rates or the highest balances. This will show future creditors that you take your debts seriously.
As you are now aware from this article, common sense is the prevailing wind that will sail you to better credit scores. By following the information here, you will be able to finally get your credit repaired.