Credit Restoration: A Key To Financial Freedom

| September 19, 2013 | 0 Comments

Many people’s credit scores have suffered as a result of the economic downturn. Fortunately, these tips and tricks will provide useful insight into ways that you can work toward a healthier credit score.

A secured credit card might be a good option for the person with a poor credit score. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. By using a new card responsibly, your credit rating will start to increase.

TIP! Any of your credit cards with balances that are above 50% of your overall limit need to be paid off as soon as possible, until the balance is less than 50%. Credit card balances are among the factors taken into account when determining 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%. Creditors like to see you using your accounts, but still keeping your balances under 50% of your allotted credit.

One thing to watch out for when trying to fix your credit is scammers who say that they can get any negative information deleted from your credit, regardless of its accuracy. These bad marks stay on your record for seven years or more. It is true, however, that you can remove inaccurate information from your report, but you do not need the assistance of a consultant to do so.

A good tip is to work with the credit card company when you are in the process of repairing your credit. This will assure them that you want to handle your debt and keep you from getting even further behind. You can do this by speaking with them and asking to change the monthly charges or due date.

Debt Settlement

Before you sign any debt settlement, research what effects it will have on your credit score. Some debt settlement methods can hurt your credit even more, and you should be sure of how it will affect you. The creditor does not care what happens to your credit score, as long as they get their money.

When looking over your credit report, look closely at the negative report that are listed. 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.

TIP! If credit repair is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. These things are, generally, on your record for seven years.

Joining a credit union may be a way to boost your credit score when you are having a hard time getting credit. Local credit unions might have different credit products than national banks, because they can focus on local market conditions.

Stop living beyond your means. You need to change your way of thinking in this regard. In the last decade, it has been way to easy for people to get credit. Many people have used this credit to buy items that they really could not afford at the time, and are now paying the price. Examine your budget, and figure out how much extra money you have to shop with.

The first step in credit score repair is to close all but one of your credit accounts as soon as possible. Transfer your balances to this one card, with the lowest interest, if this is possible. It will be easier for you to make payments on a single credit card account, as opposed to several.

TIP! Make sure you review all of the negative marks against you on your credit report. Even if a charge held against you is legitimate, any problems with its details, like the date or the amount owed, could make the entire entry invalid and eligible for removal.

When lenders examine your personal credit history, they will not consider any statements you have made about the negative marks. If anything, it will just hurt you as it will draw attention to the negative event.

Collection Agencies

When you are having trouble paying your bills, debt collection agencies will start contacting you demanding payment. Remember that when dealing with harassing collection agencies, consumers have the option to issue a cease and desist letter to stop the harassment. Even though these letters will stop the phone calls from collection agencies, the individual is still responsible for paying the disputed debt.

TIP! If your credit isn’t so hot, but you need new credit to demonstrate responsibility, then look up your local credit union. They may offer better rates and more credit due to local conditions as compared to national ones.

Put these tips into action now to get your credit under control sooner. Do not allow your credit score to dictate the way you are able to live your life. You can use the techniques that have been provided to improve your credit score and live a more fulfilled life.

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Category: Finance

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