subject: Bad Credit? Start Fixing It With These Tips [print this page] Opening an installment account can give quite a boost to your credit score. You need to review the terms of an installment account carefully, because you'll be required to maintain a certain monthly minimum. If you can manage one of these accounts, your credit score should improve quickly.
High credit card balances can damage your credit. The first step to repairing credit is to pay those balances down. 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.
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. All information remains on your credit report for a period of seven years or more. If the information is an error, the credit report can be corrected.
Do not use credit cards to pay for things that you simply cannot afford. This is nothing short of a lifestyle overhaul. 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. You should look at what you can afford to spend, before using credit for purchases.
If you are looking into a credit counselor, be sure to find out information about them before you choose to use them. Many counselors are on the up-and-up and are truly helpful. Others just want to take money from you. There are a lot of people out there that are trying to take advantage of those who are down on their luck. Knowledgeable purchasers will always make sure that the credit counselor in question is legitimate before hiring.
Making your payments on time shows lenders that you are serious about maintaining good credit. Late payments to credit cards are reported to the major credit agencies and can hurt your chances for securing a new loan.
Planning is the first step to repairing your credit. You can't just make up a plan and not change how you spend your money. Only the necessities can be purchased from here on in. Ensure that you can afford everything you buy and that you really need it.
Be honest with debt collection agencies about your situation, and see if you can work with them. Let them know when and how much you'll be capable of paying. Understand that they are able to negotiate.
Make sure you pay all your bills on time. Also, credit counseling can be a major help.
People looking to improve their credit should be mindful of any inquiries into their credit. Anytime someone looks at your credit score, that inquiry is noted.
Reduce your debt. When you apply for a loan, they take into consideration the ratio of your debt and your income. If your debt-to-income ratio is too high, then your credit score will suffer. While you may not be able to pay a lot at first, just taking the initiative to get your debts current looks good on your credit report.
If you wheel and deal and get a new payment plan, be certain to have it on paper. This will provide proof of your agreement in case any problems ever arise. Once the debt is fully paid, you need to get a statement verifying this from the creditor and send it to each of the major credit bureaus.
Pay down the balance on any credit card that is 50% or more of the credit limit. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.
