If you need to repair your credit, you know what it’s like to be denied loans and to be charged ridiculously high insurance rates. But here’s the good news: you can repair your credit. By learning all you can and taking specific steps, you can rebuild your credit in no time. Here are some tips to get you started.
In order to best manage your finances and your credit score, you should never max out a credit card. The best thing to do is to never charge more than thirty percent of your credit limit. Having a high percentage of your available revolving credit being used will reduce your credit score. Also, high balances take longer to pay off and accumulate more interest.
Keep track of your money. Pay close attention to every single penny that is coming in and going out. This will help you get organized so you can get caught up on your credit card bills faster. This will also show you what you need to cut back on.
An important tip to consider when working to repair your credit is to pay your bills on time. This is one of the most important steps for maintaining good credit and preventing your score from dropping. Bad marks for past due accounts will stay on your account for five to seven years.
If you have several credit cards to pay off, start by paying off the one with the lowest amount. This means you can get it paid off quicker before the interest rate goes up. You also have to stop charging all your credit cards so that you can pay off the next smallest credit card, once you are done with the first one.
Whether you are repairing your credit or just maintaining good credit, you must inspect your monthly credit card statements carefully. Obviously you want to catch and dispute any charges that seem wrong to you. Your dispute will go better the sooner you start it, so finding suspicious charges as soon as possible is very important.
When seeking outside resources to help you repair your credit, it is wise to remember that not all nonprofit credit counseling organization are created equally. Even though some of these organizations claim non-profit status, that does not mean they will be either free, affordable, or even legitimate. Hiding behind their non-profit mask, some charge exorbitant fees or pressure those who use their services to make “voluntary” contributions.
By paying off your bills and debt regularly, you do not have to face the stress of phone calls from collectors. If you do not pay off your creditors, they will sell your debt to another collection agency until you pay someone. To avoid being harassed, set up a payment plan with your original creditor.
If you are constantly forgetting to pay your bills, leading to bad credit, set up automatic bill payments with your bank. You can set it to be the minimum for your credit card and a full payment for other items like cable television or your cell phone and you’ll never forget it again.
Only utilize trustworthy advice on credit repair, most times only taking that from professionals. There are several sources online that offer credit repair advice, but that doesn’t mean you can rely on it all. In fact, there are several sources online that could provide information that is out of date or incorrect, which could be harmful to your credit if you used it.
If you have had credit issues in the past, then it is time to learn your rights by becoming familiar with The Fair Credit Reporting Act. This information is available for free on the Federal Trade Commission’s website: http://www.ftc.gov/os/statutes/031224fcra.pdf. Knowing your rights as a borrower can help you to resolve previous credit issues and to avoid others in the future.
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.
Getting your credit fixed by following these tips is possible. More than that, the more you find out about how to repair your credit, the better your finances will look. As long as you maintain the credit you are rebuilding right now, you will finally begin to stop worrying and finally enjoy everything life has to give.