Tuesday, January 7, 2014

Credit Improvement Has Never Been This Easy!

By Dan Annweiler


The sooner you confront your debt, the less damage it will do. Understanding how much debt you owe may keep you from creating new debt. Now that you are seriously in debt, you need to work extra hard to repair your poor credit. To repair your credit, follow the following advice.

If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. Any time you exceed 50% of your credit limit, your credit rating is affected. Pay off credit cards as fast as you can, or spread the debt out further.

A good credit report means you are more likely to get financing for a home. One way to help improve your credit is to pay your monthly mortgage payments on time. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. These benefits will pay off if you need to secure a loan.

If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. Remember that you agreed to pay that interest when you signed the contract. If you go ahead and sue your creditors, ask that they consider the high rate of interest.

If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. Unfortunately, this negative information stays on your credit record for at least seven years. If there is incorrect, negative information, you can get it removed.

When you are attempting to improve your credit score, carefully comb over your credit reports for negative information. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.

Joining a credit union is a great way to build your credit if you are having a difficult time doing so elsewhere. Credit unions often offer better interest and more options than chain banks do.

In order to start repairing your credit, you should close all but one of your credit card accounts. You should plan on how you will pay the remaining open balances, or how to consolidate them into one account. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.

Read every credit cart statement you receive in full. Errors are not as rare as you might think. Go through line by line for accuracy, and to prevent getting charged for an item or service you did not actually get. The responsibility lies with you to verify that each charge is accurate.

This simple advice can aid you in repairing your credit issues and help you keep your credit in good shape. The time you take to learn how to repair your credit is worth the trouble it saves you.




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