Having poor credit can be a serious hindrance to moving forward with your life. It can rob you of your financial options and prevent you from taking advantage of great opportunities. There are a few steps you can take to start repairing your credit now.
If your credit history has put you in the position where you are not able to obtain a regular credit card, you should try to get a secured credit card to begin rebuilding your credit. These accounts are much easier to get as you will have to fund the new account ahead of time with a deposit to cover any purchases. If you utilize a credit card responsibly, it can aid in the repair of your credit rating.
If someone promises you to improve your score by changing your factual history, this is a scam. Regardless of their claims, these debts will stay on your report for seven years at a minimum. However, information that is not correct can be removed.
Make sure you check out any credit counseling agency you consider using. There are some counselors that are real, while others are basically scammers. Some credit services are nothing more than fly-by-night scams. Smart consumers will always check to see that credit counseling agencies are, in fact, legitimate before working with them.
Do not try something that you do not know is legal or illegal. There are many different places that claim they can help you get a new credit profile. This tactic is not legal, and you face serious repercussions if you are caught. The criminal charges that you face will be very expensive, and you may also have to serve prison time if found guilty.
If your credit isn’t so hot, but you need new credit to demonstrate responsibility, then look up your local credit union. Credit unions sometimes have better rates and more options for your credit rather than a large bank. You can base this on how well the economy is in your area instead of the national situation.
Live within your means. You need to change your way of thinking in this regard. If you’re buying flashy items to boost your reputation, consider that a smart person who isn’t being chased by collectors will have an even better reputation! Instead of spending more than you can afford, take a long hard look at your income and expenses, and decide what you can really afford to spend.
Always get a plan in writing if you are going to do a payment plan that deals with creditors. The documentation you gain from the creditor is important in case the company changes ownership or the creditor is no longer interested in the deal. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
This simple advice can aid you in repairing your credit issues and help you keep your credit in good shape. It is always worth your time learning how to fix and maintain good credit, since it has a major impact on most of the larger financial deals you will make.
Author: Eddy PriceThis author has published 317 articles so far. More info about the author is coming soon.