Having poor credit can be a devastating occurrence in life. It can prevent you from leading the life you desire and living your life to its full potential. Here are a few steps you can take to restore and protect your credit score.
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. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
Installment Account
To improve your credit rating, set up an installment account. When opening an installment account, you need to make a monthly payment, so get something you can afford. If you use one of these types of accounts, your score will quickly improve.
When you’re looking to fix your credit, be cautious of credit repair companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Negative credit information remains on your record for up to seven years. However, if there is incorrect information, you can have it cleared up easily by yourself.
As you work toward repairing your credit score, you should be willing to cooperate and work with your creditors. This will assure them that you want to handle your debt and keep you from getting even further behind. Some of your options include negotiating for a later due date, and asking for reductions in your minimum monthly payments.
Call your credit card companies and request that they lower your limit on your cards. It will help to keep spending under control, and also sends a positive message to potential lenders. This means you might have a better opportunity of obtaining necessary loans in the future.
Before you commit to a settlement, you should first determine exactly how the agreement will affect your credit. Some methods will be less damaging than others, and you need to research them all before signing an agreements with a creditor. Creditors are only trying to get the money that you owe them and could care less how that hurts your credit score.
These tips will make a big difference in your fight against bad credit. Having a good credit score is crucial to getting the best interest rates possible and is definitely worth the effort.
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