Having bad credit can be a real headache. When your past unwise decisions haunt you, it can be very frustrating. It may take some time, but your credit can be repaired. The solid advice in the article below will help get you on your way.

If you have to improve your credit, make a solid plan and follow it. Real changes come from commitment to healthy spending habits. Limit your purchases only to things that are absolutely necessary. See if each purchase is necessary and affordable and only purchase something if the answers are “yes”.

Credit Card

If you want to repair your credit but do not qualify for a regular credit card, consider a secured credit card. These accounts are much easier to get as you will have to fund the new account ahead of time with a deposit to cover any purchases. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.

If your credit card is carrying more than half of its credit limit, your first priority should be paying it down until it is below 50%. Your credit score can diminish with balances over 50%, so spread out the debt or pay off the credit cards.

Interest Rates

If your creditors try to jack up your interest rates, do not pay them. It is bordering on illegal for credit card companies to charge you skyrocketed interest rates. However, you agreed to pay the interests off when you signed the contract. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.

Call your credit card companies and request that they lower your limit on your cards. It will keep you from overextending yourself financially, it sends a great signal to the credit card companies that you are a responsible borrower, and you will have an easier time getting credit in the future.

Credit Score

Before you get into an agreement about settling a debt, make sure you understand how it’s going to affect your overall credit. Do some heavy researching before starting an agreement with any creditor; there are other options that may not damage your credit score as heavily. They do not care about the effects of what they do to your credit score and are just in it for the money.

Using the tips from this article will make a dramatic improvement towards your credit score. Just be sure to remain consistent and follow through on your obligations. It’s definitely possible to repair your credit, so don’t worry and get going!