Jennifer Smith Posted on 4:12 am

Repair Your Credit With These Handy Tips

Having credit problems is hard enough, but finding information on how to help fix your credit can be harder. We have several suggestions to help you fix your credit score. These ideas can help you along the way.

You may be able to get a secured credit card even if your poor credit has prevented you from getting other credit cards. 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. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.

Having a lower credit score can lower your interest rate. You’ll be able to make your payments more easily and get your debt paid off quickly. Try to get the best offer and credit rates so you can increase your credit score.

Financial Stability

If your credit is good, it’s easy to get a mortgage on a new home. Paying down your mortgage improves your score as well. Owning a home shows financial stability, which is great for your credit. Financial stability is important should you need a loan.

Before consulting a counselor for credit score repair, do your research. There are some legit counselors, and there are some that have ulterior motives. You’ll find that other ones are just scams. If you’re smart, you’ll make sure the credit counselor is not a phony first.

Do not do anything that will make you end up in jail. Don’t buy into scams that suggest you create new credit files. You will be prosecuted, it is against the law. The legal consequences are expensive, and you might be sentenced to jail.

Contact your creditors and see if you can get them to lower your overall credit limit. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.

Dispute any errors that are on your credit report so they are removed. Contact the credit agency in writing, with documentation to support the errors that you are disputing. 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.

If you and a creditor agree on a payment plan, make sure the agreement is committed to paper. If there is a change of heart, this paper will protect you. When you pay it off, send a written copy of proof of payment to all three credit reporting agencies.

To fix damaged credit, pay off your credit card balances as fast as you can. You should first work on paying down the credit cards with the highest balance or interest rates. This will show creditors that you are responsible with the cards.

Credit Score

To increase your credit score lower the amount owed on revolving accounts. You could increase your credit score just by paying down some balances. When your available credit passes 20, 40, 60, 80 or 100 percent, it gets noticed by the FICO system.

Hopefully, this information can assist you. Do not let your situation discourage you. Your efforts will eventually pay off. Just remember that repairing your credit takes time. If you are persistent, you will find that the rewards are definitely worthwhile.