Improve Your Credit With These Simple Tips
You need not suffer the effects of bad credit, no matter how you wound up with credit problems. Whether you have been personally damaged by economic conditions, victimized by dishonest lenders or even were simply too carefree in your spending, you deserve better credit. You can reverse the effects of these actions though.
The first step in credit repair is to build a plan. You must be committed to making real changes in the way you spend money. Limit your purchases only to things that are absolutely necessary. Consider if a purchase is both essential and affordable, and only purchase it if you can answer “yes” on both counts.
If your credit card has a balance of over 50% of your limit, it should be your number one priority to pay it off until the balance is under 50%. Creditors like to see you using your accounts, but still keeping your balances under 50% of your allotted credit.
You can dispute inflated interest rates if you are being charged more than you should be. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. However, you did sign an agreement to pay the interest. Suing your creditors can be effective in some circumstances in cases where the court considers the interest rates to be excessive.
Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. Avoid collection to improve your credit score. You can accomplish this by simply calling and asking them to change payment terms, like your interest rate or your billing date.
Call each of your charge card companies and ask them to lower the limit on them. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
Apply these tips to fix your credit quickly. The most important thing is to be consistent with the process and make sure that you stay on top of your obligations. You can rebuild your credit; don’t spend your time worrying, spend it fixing your credit.