Does your credit need some help? You can repair your credit, but you have to do it right! You may be able to get a credit card or a loan with less than stellar credit, but the interest rate will also be less than stellar. Follow these tips to get better credit! Before signing up with a credit repair counselor, be sure they are a legitimate company. There are many scams that exist in order to take advantage of desperate people in serious debt. Read the reviews from other customers and the company's listing with the Better Business Bureau before signing anything with a credit repair counselor. When it comes time to rebuild your credit, the first thing to do is make a plan. Your plan should contain how you plan on rebuilding credit and how you plan on using your credit in the future. Without a plan of attack concerning your credit, you run the risk of getting into financial trouble again. If you decide that you want to repair your credit on your own, be sure to use a high quality credit repair guide and a 3-in-1 credit report.
Using a high quality credit repair guide is going to take you from point A to point B successfully, while your 3-in-1 credit report offers all the information you need to proceed in credit repair the right way. A great tip for repairing your credit is to keep your credit card balances low. If you have a $2000 limit on a particular credit card and you keep your balance above $1800, even if you are making your monthly payments on time, you are still hurting your score. Even if you have had problems with credit in the past, living a cash-only lifestyle will not repair your credit. If you want to increase your credit score, you need to make use of your available credit, but do it wisely. If you truly don't trust yourself with a credit card, ask to be an authorized user on a friend or relatives card, but don't hold an actual card.
Part of any good credit repair strategy is the willingness to negotiate with creditors. Creditors need to be repaid in any case; wise debtors will communicate with them to maximize the effects of payment. At a minimum, a debtor can ask his or her creditors to remove complaints from his or her credit report. If you're considering using a credit repair company, think again. The Federal Trade Commission recommends avoiding these companies, as many of them make promises on which they won't deliver -- and it costs money to use them, too. Repairing your credit on your own will take time, but it's also less expensive and more likely to be successful. Repairing your credit on your own will also help you understand and use your own finances wisely. Limit applications for new credit. Every new application you submit will generate a "hard" inquiry on your credit report. These not only slightly lower your credit score, but also cause lenders to perceive you as a credit risk because you might be trying to open multiple accounts at once. Instead, make informal inquiries about rates and only submit formal applications once you have a short list.
If your circumstances have changed and your monthly payments become delinquent, damage control is in order. Simply call them and ask if negotiating a lower payment is an option. Many creditors will work out a schedule to pay your account off and will not report you as delinquent provided you abide by their schedule. A great way to improve your credit rating is to ensure that you always pay your monthly credit card payments on the day that they are due. If you can not afford to pay off your balance every month you should ensure that you at least pay the minimum payment. Making your payments on time will ensure that your credit remains in good standing. With the new credit card laws in place, banks must now decline your card in the event of a possible overdraft. They will most likely try to get you to opt out of this, claiming that it is a service they provide to approve the purchase anyways, and then charge you a small fee. These fees are high. You will be much better off getting declined and using a different bank account or credit card for your purchase, than paying their fees. Every time someone inquires on your credit report, your score will go down for a short time. This is to discourage people from applying for a ton of credit accounts at the same time.
Try to apply for only a few accounts while repairing your score, and do so at long intervals. If you need to file a dispute over an error on your credit report, consider filing it through the credit bureaus' websites. Electronic filing has become the preferred way to file disputes because consumers have found this method to be more efficient than traditional mail. They found that credit bureaus usually respond faster to disputes filed online. Avoid any company that tries to tell you they can remove bad marks off of your report. The only items that can be taken off of your report are items that are incorrect. If they tell you that they will delete your bad payment history then they are likely a scam. Do not max out the credit cards that you have. The more debt that shows up on your credit report the less your score is going to be. Keep only the cards that you need to have and keep the balances as low as possible and make payments on time. This will increase your credit score quickly. Credit repair is possible, just be sure you follow these helpful tips to get the most out of your efforts. You don't have to pay higher interest rates. Given time, you can have stellar credit and obtain great rates on your loans and credit cards.