With all of the problems presented by a bad economy, low credit scores are a more common problem than ever. However, the following article gives you some helpful advice on different steps you can take to clear up your debt and improve your credit rating.
Opening up an installment account will help you get a better credit score and make it easier for you to live. Make sure that you are able to afford the payments on any installment accounts that you open. If these accounts are properly managed, they can provide a quick boost to your credit score.
If someone promises you to improve your score by changing your factual history, this is a scam. Negative info stays on your history for seven years! Items that you can get taken off your record are those that have been reported incorrectly or unfairly.
Some sound advice to follow, is to be sure to take the time to contact your credit card company and work with them. Avoid collection to improve your credit score. It is perfectly appropriate to call and request an adjustment to your interest rate or to push back a payment date if needed.
Call and request lower limits on your cards from the credit card companies. This helps you from overspending and shows that you want to borrow responsibly and it will help you get credit easier in the future.
Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
It will be easier to increase your credit rating if you only have one open credit card account. Transfer credit card balances to one card for loan consolidation. By doing this, you can concentrate on a single credit card payment, as opposed to a lot of smaller ones each month.
Take a look at credit card bills to make sure that every item is one you have charged. You don’t want them reporting these to the credit reporting companies, so you’ll need to contact them immediately if there are.
If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. This is for your protection. It allows you to have valid documentation of the terms in the event that a creditor reneges on its offer or changes owners. As soon as you get it paid off, have that in writing so you are able to inform the credit reporting agencies.
These are ways of protecting your credit rating. Each late payment that you make shows on your personal credit report and can hurt you when the time comes to take out a loan.
Now you know how to repair your credit score, so get started on a plan of action. Don’t let your credit score ruin your life; instead use this information to begin repairing the damage.