Bad credit is an unfortunate detour on the road of life. Your financial options will diminish, fewer options will be open to you and you will not be able to take advantage of new credit line offers. But, you can fix your credit in a few simple steps and protect it for the future.
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. Any time you exceed 50% of your credit limit, your credit rating is affected. Pay off credit cards as fast as you can, or spread the debt out further.
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. You did sign a contract and agree to pay interest. You may wish to make a legal claim that the interest rate charged exceeded your state's statutory limits.
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. By keeping the lines of communication open, you will avoid getting into more debt, making your credit score even worse. It is perfectly appropriate to call and request an adjustment to your interest rate or to push back a payment date if needed.
Call each of your charge card companies and ask them to lower the limit on them. This helps you from overspending and shows that you want to borrow responsibly and it will help you get credit easier in the future.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.
Joining a credit union is a great way to build your credit if you are having a difficult time doing so elsewhere. Credit unions often offer better interest and more options than chain banks do.
In order to start repairing your credit, you should close all but one of your credit card accounts. You should plan on how you will pay the remaining open balances, or how to consolidate them into one account. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.
Read every credit cart statement you receive in full. Errors are not as rare as you might think. Go through line by line for accuracy, and to prevent getting charged for an item or service you did not actually get. The responsibility lies with you to verify that each charge is accurate.
This simple advice can aid you in repairing your credit issues and help you keep your credit in good shape. The time you take to learn how to repair your credit is worth the trouble it saves you.
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. Any time you exceed 50% of your credit limit, your credit rating is affected. Pay off credit cards as fast as you can, or spread the debt out further.
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. You did sign a contract and agree to pay interest. You may wish to make a legal claim that the interest rate charged exceeded your state's statutory limits.
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. By keeping the lines of communication open, you will avoid getting into more debt, making your credit score even worse. It is perfectly appropriate to call and request an adjustment to your interest rate or to push back a payment date if needed.
Call each of your charge card companies and ask them to lower the limit on them. This helps you from overspending and shows that you want to borrow responsibly and it will help you get credit easier in the future.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.
Joining a credit union is a great way to build your credit if you are having a difficult time doing so elsewhere. Credit unions often offer better interest and more options than chain banks do.
In order to start repairing your credit, you should close all but one of your credit card accounts. You should plan on how you will pay the remaining open balances, or how to consolidate them into one account. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.
Read every credit cart statement you receive in full. Errors are not as rare as you might think. Go through line by line for accuracy, and to prevent getting charged for an item or service you did not actually get. The responsibility lies with you to verify that each charge is accurate.
This simple advice can aid you in repairing your credit issues and help you keep your credit in good shape. The time you take to learn how to repair your credit is worth the trouble it saves you.
About the Author:
While few have achieved a max credit score, many have improved their credit score. To learn how, visit http://maxcreditscore.org and click the blue banner found at the top of the page to view a free video on your credit score.
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