Keeping track of who you owe and what you owe can help prevent formation of debt. Now that you are seriously in debt, you need to work extra hard to repair your poor credit. To repair your credit, follow the following advice.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. Your credit score can diminish with balances over 50%, so spread out the debt or pay off the credit cards.
You can easily get a mortgage if you have a high credit score. Staying current with your mortgage payments is a way to raise your credit score even more. As a homeowner, you will have a major asset that can have positive effects on your credit profile. Financial stability is important should you need a loan.
Credit Report
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. Negative info stays on your history for seven years! If the information is an error, the credit report can be corrected.
When you are trying to fix your credit record, call your creditors and make payment arrangements that will benefit both of you. Avoid collection to improve your credit score. Talk to the company and see if you can change your due date or monthly fees.
Contact the credit card company and ask to get your card limit lowered. This will help you accomplish three things: 1. You will avoid being overextended. 2. Credit card companies will begin to view you as responsible. 3. It will be easier for you to get credit as time passes.
When you want to rebuild your credit, take a close look at any negative reports that are harming your credit. Errors are not infrequent in credit reports. If you can prove the credit bureau is in the wrong, they should correct the reported error or remove it entirely.
Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Gather your support documents, make a list of the errors, and compose a letter to pertinent agencies. Ask for a return receipt so that you can prove that the agency got your package.
Repairing credit is mostly done by common sense methods. Following these simple steps and credit improvement will no longer be a distant dream.
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