If your credit is such that you cannot get a new card to help repair it, apply for a secured one. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. Responsible use of any credit card can help your credit rating. However, never forget that irresponsible use will get you in trouble every time.
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. Your credit score can be negatively impacted if you are carrying a large balance compared to the available credit you have. While you are paying off these cards, reduce the balance to a small percentage of your available limit.
Your low credit score will cut your interest rates. It will lower your monthly payments, so your debt will be taken care of at a much quicker rate. Take advantage of special offers and favorable interest rates to secure manageable credit payments and a good credit rating.
Getting a reduced interest rate is the easiest way to reduce your overall debt. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. You did sign a contract saying that you would pay off the debt. If you plan on suing your creditors, you may be capable of having the interest rates viewed as being too high.
Any company or credit counselor that claims they can erase all negative reports from your credit history should be viewed with some skepticism. Negative info stays on your history for seven years! But, you should remain mindful of the fact that errors can be deleted from your report.
Make sure you research a credit counselor before you visit them. The industry is rife with fraud and people with ulterior motives, so finding a legitimate credit counselor can be challenging. Some are not legitimate. You should research any counseling service you are considering prior to initiating communications with them.
Good credit isn’t worth much if you are in lockup. The web is full of scams that show you how you can craft a deceptive credit file. This is illegal and you will eventually be caught. The legal proceedings will be costly, and you may even be sent to jail.
The first step in repairing your credit involves a thorough and careful check to ensure your credit report doesn’t contain erroneous information. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.
If you see errors on your credit reports, dispute them with the credit agency. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.
Too many credit cards is a common cause of financial strain, so close all of your accounts aside from one. You should arrange to make payments or make a balance transfer to your open account. Paying off one main credit card will be easier than paying off several cheaper ones.