Find Solutions To Your Credit Problems Here
It’s always a great idea to check the fine print of any contract before you take out a line of credit, but many people neglect to do this and owe a lot of money. There’s no sense in beating a dead horse here. The important thing now is to work toward getting out of debt, so let’s go over some useful information to clean up that credit score.
Generally, it is not a good idea to wipe old accounts off your credit report. The reason is if you are applying for an auto loan or a mortgage, or another type of loan, you will need to show that you have had credit in the past, so the old accounts will come in handy. About 15% of your credit score reflects the length of your credit history.
When it comes time to rebuild your credit, the first thing to do is make a plan. Your plan should contain how you plan on rebuilding credit and how you plan on using your credit in the future. Without a plan of attack concerning your credit, you run the risk of getting into financial trouble again.
There exist several non-profit agencies that can help you repair your credit. Instead of reducing the amount you owe (which gets reported negatively) you can work with these organizations who will liaise with the debt collectors to reduce the interest rate, which in effect reduces the amount owed.
To improve your credit history, ask someone you know well to make you an authorized user on their best credit card. You do not need to actually use the card, but their payment history will appear on yours and improve significantly your credit score. Make sure to return the favor later.
Although it requires a lot of time, seven years to be more precise, and a ton of patience, sometimes, simply waiting it out is your best option. Typically, after seven years, bad debt falls off of your credit report. So if you can commit yourself to no new debt for seven years, it could be smooth sailing.
If an initial dispute is denied and you disagree, submit a dispute in writing including copies of any supporting documentation. Taking the extra time to ensure your report is accurate helps your credit, and can have a significant impact on interest rates and other items driven by credit your score or information.
If bankruptcy is the only choice you have, try to file before attempting other fruitless measures. In some cases, bankruptcy is the only way that you can completely eliminate your debt, and if that is the case, there is no point in waiting around trying methods that have no results. The quicker you file, the quicker everything can be completed so your life can finally begin anew.
You must fix your credit, no matter the time or effort invested, unless you want to deal with bad credit for a long time. Take the advice given here and you will be doing the best you can to set yourself on the right path to financial freedom.