No matter what your current situation, you have probably damaged your credit by opening one too many credit cards or being affected by the economic downturn. Fortunately, you can take some actions to get your credit score climbing in the right direction.
If you desire to fix your credit, create a plan on how to go about paying your debt. Carrying too much debt will reduce your credit score while burdening you financially. See what bills you can lower or even pay off entirely to relieve the burden on your credit score. If you do not have any debt, your credit score will go up.
When working with a credit repair agency, it is imperative to find one that is legitimate. Unfortunately, the credit repair business does have a significant number of companies that are not reputable. Many people have fallen for scams involving credit repair. Reading unbiased customer reviews will help you decide what company you want to work with.
Avoid using a law office that claims they can fix your credit. With so many people struggling, scammers are taking advantage of their desperation by offering them fake or fraudulent credit services. Before contacting a lawyer for assistance, do some investigating.
Pay off your bills before attempting to repair your credit. Credit counseling can help you to design a complete debt repayment plan.
To keep your credit in good standing and get a better score, maintain a low balance on revolving accounts. You can improve your score by lowering your balances. The FICO system has a new level for every twenty percentage points of your credit available.
Get a written copy of any payment plan you negotiate with a creditor. This provides you with documentation that an agreement is in place in case the company changes hands or the creditor tries to change the terms of the agreement. As soon as you get it paid off, have that in writing so you are able to inform the credit reporting agencies.
If you have a hard time resisting the temptation of credit, then ask your creditors to lower your spending limits. Only attempt doing this if you are sure you can manage keeping your balance low. It's important to make sure that there is a decent size difference between your credit limit and your current balance.
Improve your credit score by keeping balances low on any credit cards you have. If you currently have a $4000 limit on a card, you never want to have a balance of more than $3800. Even if have been consistent in making on time monthly payments, the more you owe on your card, the more damage you are doing to your credit score.
Build your credit back up to repair it. Prepaid credit cards help you re-establish credit without the risk of falling into an even deeper hole due to delinquent payments. This will show potential lenders that you are responsible and credit worthy.
It can be stressful to try and figure out how to improve your credit, but if you keep at it, you can make things better and see the results you want. Utilize the above information to start the journey of improving your credit score.