There are millions of bad credit scores out there today. It’s no surprise, not with a poor economy, rising living costs, stagnant wages, and a nasty employment market. Read on for some insightful techniques to improve your credit.
A lower credit score can get you a lower interest rate. Lower interest rates make paying bills easier, and prevents you from incurring debt. Receiving competitive credit rates and good offers are important in having credit that you can pay off easily, and that will get you a great credit score.
A respectable credit score makes it much easier for you to purchase a home with a mortgage. If you pay your mortgage as agreed, your credit score will rocket into the stratosphere. When you are a home owner you will be financially stable based on what you own. Having a home also makes you a safer credit risk when you are applying for loans.
Legitimate negative credit problems can not be easily wiped away from your credit rating, so be wary of companies that promise they can do so. Negative info stays on your history for seven years! Stay mindful, however, of the fact that false information can be stricken.
Consumers should carefully research credit counseling agencies before choosing one with which to work. Some counselors truly want to help you, while others are untrustworthy and have other motives. Other counselors are nothing more than scam artists. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.
Give your credit card company a call and ask them to lower your credit limit. This helps you from overspending and shows that you want to borrow responsibly and it will help you get credit easier in the future.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Sending your letter by certified mail provides you with proof that the letter was received.
Close all your credit cards except for one as a means of repairing your credit. Transferring multiple balances to one single card is a way to gain control of your finances. This will let you focus on paying off a single account rather than many small ones.
Go over your monthly credit card statements to check for mistakes. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.
If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. If the creditor tries to change the agreement or if it the company is sold to someone else, you will have documentation to support your case. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
Now that we have gone over the different ways you can go about repairing credit, why not get started now? Low credit scores can adversely affect the actions you take in life so start now to begin increasing your credit rating.