Does your credit report smell like rotten eggs, dead fish, and cow manure all mixed together? The following advice will help in the path to getting your credit back on track.
Put the spending brakes on yourself by lowering your credit limit on all of your cards. Not only will this prevent you from owing more, but it will be reflected in your credit score because it shows that you are responsible with your credit.
When you are trying to clear up your credit contact your credit companies. When you work with company you are not working against anyone, including yourself. This will help prevent furthering yourself into debt. Don’t be afraid to ask for alterations in interest rates or dates of payment.
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
Unfortunately, no financier is going to be interested in the statement you provide when they are examining your credit history. The most it will do is draw more attention to the bad aspects of the report.
The first step to repairing your credit is to make a plan to begin to pay the money off. Your current credit score is depressed by existing debts, which are also a financial and psychological burden to you. Develop a budget that realistically reflects your situation and try to devote as much of it as you can to paying down your debts. If you don’t have any debt, your credit score will be higher.
You can ask your credit card companies to reduce your credit limit. This is only a viable option if you are able to maintain a low balance on what you owe. By increasing your limit, you can reduce the ratio between your credit limit and the amount that you owe.
Carefully read all of your credit statements. You want to double check that all the charges are accurate, and that you are not paying for something you did not purchase. You bear the responsibility for looking after your own best interests, and you are the only person who will know if your statement is accurate.
If you can’t get a normal card due to low credit score, look into a secured card. Secured credit card applications have a high rate of approval because you must fund a security deposit against your credit limit. Responsible use of any credit card can help your credit rating. However, never forget that irresponsible use will get you in trouble every time.
With the application of this advice, you do not have to be haunted by your poor credit report. Start on your way to better credit with confidence. By learning from these tips, you can have the credit report of your dreams.