Tips About How To Fix Your Credit – Part 2

Avoid filing for bankruptcy. The record of the bankruptcy appears on your report and affects your credit rating for up to 10 years. Bankruptcy not only zeros out your debt, it also zeros out your credit score. If you do file for bankruptcy, it will be extremely difficult to get approved for a loan or a credit card for many years, if ever.

Pay the balances on all credit cards as soon as you can to start the credit repair process. Pay down credit cards that have the highest amount owed, or the highest interest rates. This will show future creditors that you take your debts seriously.

When you receive a credit card statement you should immediately look at the statement. You are looking to see that every charge is correct and determining whether or not you are being charged for an item you didn’t buy. You need to be sure that everything is correct on the statements.

Lowering the balances you carry on revolving accounts can improve your credit score. Maintaining smaller balances can improve your credit rating. When balances are 20, 40, 60, 80 and 100 percent of the total credit available, the FICO system takes note of it.

Debt collection agencies can be the most stressful part of a bad credit crisis. Consumers can legally issue letters to collection agencies to cease and desist if they are being harassed. These letters will discourage contact from collection agencies. This will stop the calls from collection agencies, but that doesn’t mean consumers can keep ignoring the debt.

You may get into the situation that you have multiple debts and you just don’t have enough money to pay them all. Make the minimum payment on each of your debts and use any leftover money to concentrate on paying off the highest interest debt. Even if the payments you are making are the minimum ones, these small payments will still somewhat please your creditors, which will likely stop them from getting in touch with collection agencies.

Create a plan to settle all of your unpaid and past-due accounts. While this will not remove the debts from your credit report completely, they will be showing as paid and no longer negatively affect your rating.

If you are having problems paying your monthly payments, contact your creditor and try to work out a payment plan. In many situations, a creditor is going to be willing to work with you. As an added benefit, this may alleviate some financial strain allowing you to focus on accounts where an alternate repayment plan is not available.

As this article demonstrates, you no longer have to be plagued by nightmares about your credit score. You do have the ability to fix your credit. By the time you finish applying these tips, your credit score will be on its way up.

Related posts:

Leave a Reply

Your email address will not be published. Required fields are marked *