Everything You Should Know About Credit Score Repair

Due to the state of economy, it is no surprise that so many people have bad credit scores. Follow these tips if you need a better credit score.

Credit Limit

If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.

If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. The incredibly high interest rates can get challenged and reduced in some situations. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. The only way you are legally able to sue the creditors is if you are able to prove that your interest rates are much too high.

If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. It seems unfair, but accurate negative information will stick around for seven years. It is possible to have erroneous information removed from your report, however.

Before using a credit counselor, it’s important to research them completely. Some counselors truly want to help you, while others are untrustworthy and have other motives. Other options are clearly scams. Intelligent customers will make sure to determine the legitimacy of a credit counseling agency before acquiring their services.

Contact your creditors and see if you can get them to lower your overall credit limit. This is likely to keep you from overusing credit, which can be a financial burden. It also lets credit card companies know that you are responsible, and this makes them more likely to extend credit to you as time goes on.

Before you agree on an agreement for settling your debt settlement, you should determine what affect this will have on your credit score. Certain methods of settling your debts have less detrimental effects on your credit history. Creditors just want their money and really aren’t interested on how it will affect your score.

Credit Card

Take the time to ensure each month’s credit card bill is correct. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.

If you and a creditor agree on a payment plan, make sure the agreement is committed to paper. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. Finally, when it is paid in full, get documentation thereof to submit to credit agencies.

Do not file for bankruptcy if you do not have to. Bankruptcies appear on credit reports for ten years. Though it may seem necessary at the time, you should weigh the costs over the next ten years before you decide to go through with the filing. Once you have filed for bankruptcy, it may become very difficult to secure a loan or open a new credit account.

It is important for you to thoroughly look over your monthly credit card statements. Really analyze the purchases on your card to make sure you are not receiving any errant charges for items you never purchased. You are the only person that is responsible for making sure the statements are error free.

Put these tips into action now to get your credit under control sooner. Act now to start on the road to improving your life by improving your credit.

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