Do you lose sleep over the state of your credit report? By following these tips, you can achieve a credit report that you do not have to be ashamed of.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. 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.
You can easily get a mortgage if you have a high credit score. Staying current with your mortgage payments is a way to raise your credit score even more. Having a major asset like a house also looks good to potential creditors. If the need arrives to obtain a loan for any reason, this will be a valuable asset for you.
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. The incredibly high interest rates can get challenged and reduced in some situations. You did sign a contract and agree to pay interest. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. Negative credit information remains on your record for up to seven years. It is possible, however, to remove errant information.
Never hire a credit counseling company without doing some research, so as to ensure they are a reputable organization. Although some credit counselors are truthful and legitimately helpful, other credit counselors are not honest and upfront with their motives. Some will try to cheat you. A savvy consumer will always do his or her research on any credit counseling service to ensure that the agency is legitimate.
Officially dispute any errors you find on your credit reports. Gather your support documents, make a list of the errors, and compose a letter to pertinent agencies. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.
If your credit is poor, take the first step to repairing it by closing out the majority of your cards, leaving yourself just one to use. Call your credit card company and try to work out a repayment plan, or transfer the balances of multiple cards to one lower interest card. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.
Get a written copy of any payment plan you negotiate with a creditor. This is for your protection. It allows you to have valid documentation of the terms in the event that a creditor reneges on its offer or changes owners. When the debt is eventually paid or settled in full, you should request documentation of this and forward copies to the primary credit reporting companies.
Now you know that your bad credit doesn’t have to give you nightmares. You can fix your credit and not let it bother you anymore. By following these tips, you will soon have an ideal credit rating!