Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. Fortunately, there are quite a few ways that you can remedy your credit situation.
You must make an effort to pay the minimum payment at least on your credit cards when you are engaged in repairing your credit. Your late payments on your credit cards can be reported to credit bureaus, even if your payment is a single day late. You can demonstrate your responsibility by making your payments on time, every time.
You should locate a good credit score repair company to help you. The credit improvement business has a lot of unfair and shady companies. Sadly, many people have fallen for credit repair scams. Be a smart consumer and educate yourself by researching user reviews online to find a good agency.
When you’re looking to fix your credit, be cautious of credit score repair companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Negative info stays on your history for seven years! However, information that is not correct can be removed.
Repairing your credit isn’t something you can do overnight, but the best way to fix it is to slowly raise it back up. Prepaid credit cards can be a good way to raise your FICO score, away from the dangers of late fees or charges for exceeding your credit limit. You will prove to creditors that you can pay your bills.
You should keep the balances on your credit cards low to help you fix your credit. Try to get your balances down on each individual card, because having one card with a balance near its maximum can reduce your credit score and damage your future credit.
Discuss your situation honestly with debt collectors and try to work with them. Let them know a realistic amount you can pay. Remember that they’re usually open to negotiation.
A very big portion of your credit score is your ability to pay your bills before they become late. Payment reminders can assist you in remembering to make payments. There are a lot of different ways to remind yourself to pay your bills. Use your online banking account to send an email reminder, or keep your eyes open for regular texts or messages from the company themselves.
Although it can seem daunting, you can get your credit on the mend by learning about it and taking the proper steps. With the tips above, you are better prepared to take action and get your credit situation back where it should be.