Repair Your Credit In A Few Easy Steps
A poor credit score can greatly hurt your life. It can be used to disqualify you from jobs, loans, and other basics that are needed to survive in today’s world. All hope is not lost, though. There are some steps that can be taken to repair your credit score. This article will give some advice that will put your credit score back on track.
Nothing will repair your credit other than time. If you have late payments, defaults or even bankruptcy, your score will go down. There is no way to remove these once they have been reported. Only time and good behavior will eventually make them less and less of a determining factor in your score and the credit that you receive.
To rebuild bad credit quickly after a bankruptcy, pay all your bills on time every time and consider acquiring a secured credit card. Secured credit cards are awarded on the basis of collateral over credit rating. The higher risk lending policies of these cards also translates to higher interest rates, though, so only use your card for emergencies, keep the balance low, and always pay on time and over the minimum.
With employment at an all-time low, you may find yourself falling behind on payments for the first time in your life. If your credit score has taken a major dive because of a job loss, don’t despair for credit repair is possible. Many times calling your lenders and explaining your situation can help bring down your monthly payments, making it easier to pay your bills on time each month.
Know your rights when dealing with the credit bureaus. When you file a dispute over an error, the credit bureau has 30 to 45 days to investigate the error. If the mistake is confirmed, or if the creditor does not respond to the investigation, then the error must be removed from your report. This is your right, and you need to remember that.
If you want to repair your credit score, avoid actions that send up red flags with the credit agencies. These flags include using advances from one card to pay off another, making large numbers of requests for new credit, or opening too many accounts at the same time. Such suspicious activity will hurt your score.
An important tip to consider when working to repair your credit is to make sure you exhaust all possible resources before considering bankruptcy. This is important because bankruptcy will remain on your report for 10 years and is extremely hard to come back from. Always consult with a credit counselor beforehand.
Paying your premiums in full instead of on a monthly schedule can help you save big money on your auto insurance policy. If you can pay a larger portion of a 6-month or 12-month policy, you should definitely go ahead and get the premium paid off. This will allow you to save some money over the life of your plan.
Nobody wants a poor credit score, and you can’t let a low one determine your life. The tips you read in this article should serve as a stepping stone to repairing your credit. Listening to them and taking the steps necessary, can make the difference when it comes to getting the job, house, and the life you want.