Ways To Rebuild Credit On Your Own
If you are concerned about your credit, be sure to pull a report from all three agencies. The three major credit reporting agencies vary extensively in what they report. An adverse score with even one could negatively effect your ability to finance a car or get a mortgage. Knowing where you stand with all three is the first step toward improving your credit.
Keep your credit card balances below 50 percent of your credit limit. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
Limit yourself to 3 open credit card accounts. Too much credit can make you seem greedy and also scare off lenders with how much you could potentially spend in a short period of time. They will want to see that you have several accounts in good standing, but too much of a good thing, will become a negative thing.
Recognizing tactics used by disreputable credit repair companies can help you avoid hiring one before it’s too late. Any company that asks for money in advance is not only underhanded but criminal. The Credit Repair Organizations Act prohibits credit repair companies from accepting payments before their services have been rendered. In addition, they neglect to inform you of your rights or to tell you what steps you can take to improve your credit report for free.
When using a credit repair service, be sure not to pay any money upfront for these services. It is unlawful for a company to ask you for any money until they have proven that they have given you the results they promised when you signed your contract. The results can be seen in your credit report issued by the credit bureau, and this could take six months or more once the corrections were made.
A must have skill for any person learning to repair their credit, is to pay more than the minimum balance. Not only does this improve your credit image and save you in finance charges, but it is a discipline that will carry over into other areas of your finances, such as unnecessary spending and a greater ability to budget. Paying more than the minimum is a valued and valuable discipline, we can all benefit from having.
Life happens, but once you are in trouble with your credit it’s important to maintain good financial habits. Late payments not only ruin your credit score, but also cost you money that you probably can’t afford to spend. Sticking to a budget will also help you to get all your payments in on time. If you’re spending more than you’re earning you’ll always be getting poorer instead of richer.
Ask a family member or a close friend if they will add you to onto their credit card account as an authorized user. This account should be a couple of years old, should have nearly flawless payment history, and should have a balance that is low. You will inherit the history of the account on your credit as if you have always been on that card.
Remember not to lose sight of your credit repair goals and you should be fine. Use all of the knowledge that you have just learned about repairing your credit, to get a start on or to improve the way you’re going about fixing your credit. If you keep a positive mind and apply what you know, you should have no problem with getting back on track.
History was made in Washington, D.C., one month ago today. Despite hurricane and flooding threats, tens of thousands of people from around the world joined to UNITE to Face Addiction in dramatic......READ MORE
Like many famous musicians, Smokey Robinson went through a period in his life when drugs became a central focus — but for the Motown great, this descent into addiction ultimately led to an......READ MORE
There are a lot of people today that want to repair their credit but they aren’t sure what steps they need to take. If you’re one of those people, look no further because this article has plenty......READ MORE