Bad credit is a problem that must be remedied. While many with bad credit look to credit settlement companies, there are many that are fraudulent and do not provide the services and advice that you are told. They are the unrepeatable companies that are there strictly to make money, and often times do more damage to the person in debt.
If you find yourself dealing with a company that is asking you to be misleading, get out of there. For example if you are asked to conceal bad credit or use wrong information. These strategies will land you in a leap of trouble. What are the steps that can get you out of bad credit safely and surely?
Here are some tips:
First get a copy of your credit report. Unauthorized charges, errors and negative remarks that are older than seven to ten years hurt your score tremendously. Review your credit report and see if you need anything that needs correcting. If you happen to have some items that need to be corrected then it will be necessary to send a letter to the credit bureau that issued the report. When the corrections have been made, this will raise your credit score by a number of points.
Always pay your bills when they are due. Your history payment makes up 35% of your total FICO score. What this means is with as little as a few late payments your rating can be affected. When you are already in a position of having bad credit, you cannot afford to have even one late payment. You can keep your credit score from further damage by paying your bills when they are due.
Keep your credit lines free. Your credit usage should not be more than 30% of your allotted limit. If you own credit cards or even a single card, make sure that your monthly charges minimum.
Keep track of your spending. Here is another step that is necessary to help eliminate bad credit. It is vital now to save as much as possible so that you are in a position to pay your credit down. Obviously, there is no room for splurges. It is now that discipline is a must. Motivate yourself and begin to limit your spending in order to save your credit. You will be rewarded in the end with a good credit score.
Consider speaking to your creditors regarding your credit problems. Creditors will negotiate to help you retain your credit; whether this in repayment terms, waving late fees or negotiating a lower balance should you pay the entire balance at once. Speak to your creditors and make reasonable requests always meet your promises.