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Credit Repair: It’s Easier Than You Think!


Your credit may have greatly suffered when you spent more money than you could actually afford or had to make ends meet in this poor economy. Don’t despair, because there are ways to get things back on track.  Credit repair is easier than you think for many people.

Managing your credit card

If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates if they truly are unfairly high according to the law.  There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. However, you have entered into a legal agreement that requires you to pay accrued interest. It is possible that you can sue a creditor and claim that the interest rate charged is unreasonably high.  Do you know what the interest rate is you are being charged? What is the legal limit allowed?

Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. 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.

A respectable credit score makes it much easier for you to purchase a home with a mortgage. Staying current with your mortgage payments is a way to raise your credit score even more. Home ownership demonstrates that you have financial stability because they are secured by a valuable asset, and this results in a raised credit score. This is helpful in case you want to borrow money.

Review your credit report

Review your credit report for any outstanding debt or missed payments. Carefully check your credit report for errors or mistakes then set in place a plan to pay off the listed debts. Fully repay the debt with the most expensive interest rate first, but make sure you do not fall behind on other minimum payments.

Read your negative reports carefully when attempting to rebuild your credit. If you notice a mistake on your report, you could get some items crossed off. Even if the item itself is right, an error in the date or amount gives you the right to contest it.

For those with imperfect credit, it can be hard to secure financing for a home. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. FHA loans even apply for someone who doesn’t have closing costs or the funds that are needed for down payment.

Put together a plan to pay off the collection account and past due accounts. These will remain on the credit report, but will be reported as paid. This is better than having past due debt.

It is illegal for companies to threaten you during collections. Take a written account of it to pursue action against them. Laws which protect debtors exist, and it’s vital that you understand them.

Dispute every error you identify on your credit report. Write a dispute letter to any agencies with recorded errors, and include supporting documents. Send any correspondence by recorded mail to ensure proof of receipt by the agency.

Opening additional lines of credit will negatively affect your credit score. Avoid obtaining checkout credit cards that offer huge discounts. If you open all these new accounts, you could see a drop in your credit score.

If you are working to repair your credit pay down on your highest credit cards. Having a high percentage of your available credit being used hurts your score, even if you make regular monthly payments.

Even though mending your credit can seem very overwhelming at first, if you apply some hard work and good advice, your credit can be repaired. The advice offered in this article can help to get you back on track to repairing your credit. After all, fixing your credit may be easier than you think but requires your work and commitment. Lastly, you may also want to check this article that suggest a more defined plan to repair your credit that you can click HERE