subject: Repairing Your Credit - Easy Steps [print this page] If you have a less than perfect credit score you need to realize you are not alone. According to a recent study the average American has a credit score of 620! Or in other words bad credit.
This is in part due to our financial crisis, however as a result of the banking crisis many lenders have drastically changed approval requirements for credit lines. We have heard from lending insiders that with a score below 700, you are paying higher interest rates and frequently being rejected!
Contrary to public opinion repairing your credit, is not illegal or impossible. In fact the contrary is true, our government has passed laws that give you the right to challenge and dispute any item on your credit history that you believe is incorrect!
The first thing is to access your score. Many different sites can give you your score, and some will do it for free. It is essential to understand how much damage has been done to your credit in order to start fixing the issues.
It is possible that you can pay certain bills late or pay in installments. You need to contact your creditors and try to make arrangements. You can save yourself a lot of money if you learn what you need to do to avoid paying interest penalties. Focus on paying off inflexible accounts first, followed by those that allow late payments.
As you look over your credit report, take note of any negative information for followup. Inaccurate information on your credit report can be corrected, but this can only be done if you promptly contact the business that made the error. If the negative entries are accurate, having the details available makes it easy to start cleaning bad credit entries.
Collection companies are required to abide by certain laws. Make sure you are aware of what a collection company can and cannot do. One very important law is that these agencies are not allowed to threaten or intimidate you. No one should be put through verbal abuse. Be sure to know your state laws. If you are familiar with your rights, you may find it easier to protect yourself from unsavory business practices.
Always try to ensure that your credit card balance does not exceed 30 percent. Staying at or below 30 percent will make your payments manageable. When it is over this, it can be hard to pay off.
You need to consider other methods of repayment whenever you can not keep up with your current bills. If you are willing to work with collection agencies, they will help you. If you ignore them, however, your debts will remain unpaid and the agencies will be less likely to work with you amicably.
At times, collection agencies can decrease the money that you owe and could even lower this amount by up to one half. The more you ignore the problem, the more late charges you will receive. Anything to make this process stop will help you out tremendously.
The tips offered in this article will help you fix your credit problems. Help from others and waiting for long periods of time is not necessary. It is also a smart decision to consider hiring a professional credit repair company to help you correct your credit history.
