It’s Time To Play The Credit Repair Game
Overwhelming debt makes many people feel helpless. It could have been created by honest errors or life experiences out of your control, but bad credit can really stifle your lifestyle and act as a constant reminder of times you’d like to forget. There are, however, a few ideas you can use to repair your credit right now. Let’s get started.
If your credit card is carrying more than half of its credit limit, your first priority should be paying it down until it is below 50%. 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.
It’s easy to lower your interest rate by ensuring your credit score is high. This allows you to eliminate debt by making monthly payments more manageable. The way you can achieve an excellent credit score is by getting good offers and credit rates that are competitive in order to make paying off debt easier.
Installment Account
Opening an installment account can give quite a boost to your credit score. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. A properly managed installment account will work wonders on your credit rating.
One thing to watch out for when trying to fix your credit is scammers who say that they can get any negative information deleted from your credit, regardless of its accuracy. This information can stay on your record for about seven years. Incorrect information may be erased though.
Before using a credit counselor, it’s important to research them completely. Many counselors are honest and helpful, but others may be less interested in actually helping you. Some are simply fraudulent and are out to get your money. Before you conduct any business with a credit counselor, check into their legitimacy.
Avoid credit schemes that will get you in trouble. There are less than honest entities that will show you how to make a brand new credit file. It’s illegal to do this and you can get caught easily. Think of the legal costs and the possibility of doing hard time.
Contact your creditors to request a reduction in your credit line. You will not be able to spend too much and they will see that you are responsible.
Dispute every error you identify on your credit report. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter.
Live within your means. You will need to change the way you think about spending money. If you’re buying flashy items to boost your reputation, consider that a smart person who isn’t being chased by collectors will have an even better reputation! Take a hard honest look at your budget, and figure out what you can honestly afford to spend.
Having bad credit can lead to feelings of hopelessness, and these negative sentiments can pervade your thoughts. Following these tips to improve your credit score will help you take charge and have a more positive attitude.