Great Tips That Can Help You Fix Your Credit
Dispute any errors that you find on any of your credit reports. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter.
Errors in your credit history report can significantly affect your credit rating which, in turn, can make it difficult for you to acquire new credit. Fixing your credit yourself is optimal if you want your credit report to look good. Check out the following tips on how you fix your credit on your own.
Take the time to carefully go over your monthly credit card statement. Always check to make sure that you are being charged correctly, and not being double charged or charged for items that you did not buy. It’s up to you to make sure that every item on your bill is correct and dispute those that are not.
A first step in fixing your credit is to close all credit card accounts that are unnecessary. Aim to only have one account. You can make arrangements to pay the balances, or transfer the balances of your closed credit card accounts to your single remaining credit card. It will be easier for you to make payments on a single credit card account, as opposed to several.
If you have a poor credit rating, it can be extremely difficult to obtain a mortgage loan for a home. If possible, apply for an FHA loan; these loans are backed by the United States government. FHA loans can even work when someone lacks the funds for down payment or closing costs.
Keep a record of all correspondence with the credit agencies so you can have all inaccurate information taken off your credit report. Keep a record of all your phone calls and correspondence. Send your dispute letter as certified mail so you can prove it was received.
Paying off each of your accounts and bills on time can help to repair your credit. Also, credit counseling can be a major help.
Unfortunately, no financier is going to be interested in the statement you provide when they are examining your credit history. The most it will do is draw more attention to the bad aspects of the report.
Try joining a credit union to begin a credit score. With help from a credit union you might get better rates than at another bank, since credit unions better understand the current area compared to the national situation.
Put your credit cards on lock down and don’t use them at all, if possible. Try to use cash instead for all of your purchases and bills. If the purchase you’re buying is more than you can currently afford you can use a credit card, but pay it back as soon as possible.
If your credit card has a balance of over 50% of your limit, it should be your number one priority to pay it off until the balance is under 50%. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
Prior to agreeing to a debt settlement agreement, find out how that process is going to impact your credit score. Research all of your options, make an informed decision about the method you chose, and only then should you agree to the settlement. Some are out there just to take your money; they don’t care about your rating.
Maintain multiple different types of credit. All of your credit types are factored in to determining your credit score. You can raise your credit score along with paying them promptly by having to pay various types of credit, like credit cards, mortgages, or auto loans.
Credit counselors should always be researched thoroughly before being consulted for credit repair. Many counselors are honest and helpful, but others may be less interested in actually helping you. Others are outright scams. Consumers should always check to see if a credit counselor is not a scam before deciding to use them.
You should keep a low balance on your credit cards to improve your credit rating. You can up your credit rating just by paying down your balances. The FICO system will make a note when the balances are at 20, 40, 60, 80 and 100 percent of the total credit available.
By now, you should be encouraged to know that there is much you can do to help repair your bad credit. Our helpful tips provide several ways for you to acquire a healthy credit score. You can fix your credit by yourself, and you will win in the long run.
When you are trying to fix your credit record, call your creditors and make payment arrangements that will benefit both of you. This will keep you from increasing the amount of debt that you have. One way to tackle this problem is to call them and ask if you can have the due date or monthly charge amount changed.
2012-11-20 17:42:26
Source: http://onegramgoldingot.com/great-tips-that-can-help-you-fix-your-credit/
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