Errors that are in your credit report can hurt your credit rating and may make it difficult to get yourself new credit. D.I.Y credit repair is one of the best ways to improve your credit. Here are a few ideas for fixing your credit.
There are secured credit cards available if your credit rating is too low to open up a regular credit card account. You will most likely be approved for this type of card, but you will have to add money to the card before you can use it so the bank will know that you can pay for all of your purchases. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
If you have credit cards with balances that are greater than fifty percent of the maximum, you should pay those down as quickly as possible. It's best to keep all of your credit cards below the fifty percent mark! Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
Getting a reduced interest rate is the easiest way to reduce your overall debt. An interest rate that is shockingly high can possibly be ruled as illegal in certain cases. However, when you signed up for the line of credit you also agreed to pay the interest. If you're going to try taking your creditors to court, make sure you can prove the interest rates they charged were excessively high.
If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. You should make sure it is an installment account that you will be able to pay into every month. Paying on time and maintaining a balance will help improve your credit score.
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. You may be able to challenge an interest rate that is extremely high. You did sign a contract and agree to pay interest. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.
Make sure you review all of the negative marks against you on your credit report. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.
Joining a credit union may be a way to boost your credit score when you are having a hard time getting credit. You may find that the credit union has more options and better rates to offer you than banks will.
Try to pay down all of your debts until you're only carrying a balance on one. Make the minimum payment each month on your other accounts, but make the largest payment possible to the one account you are focusing on. It is much easier to manage one large monthly payment than it is to keep track of multiple smaller ones.
Many times you and your creditor can work together to come up with a prepayment plan. If so, be sure you get a written agreement stating the terms. Having documentation is important for your records but also protects you in case a creditor changes their mind. When the debt is eventually paid or settled in full, you should request documentation of this and forward copies to the primary credit reporting companies.
If you felt bad about your credit score, use these strategies to change that. These tips will help your score stop failing and start improving.