Credit Repair Information
Ok, so you might not have the best credit report on earth. Monthly
credit card payments have been missed, you’ve borrowed from one card to
pay the other, and you’ve run your card balances to their limits. Now
you’ve gone to get loan somewhere and the people there told you your
credit stinks and laughed at you. Well, guess what? You’re not alone.
You have to do something about it because the interest rates they are
offering you for loans are out to lunch. And that’s only the companies
that are actually crazy enough to lend you money. Most firms will not.
Here are some strategies to start healing that banged up credit score:
Formulate a plan. You have to change your ways and commit to the
changes. There’s no point in only doing things half way. Only buy what
you absolutely need and stop buying every little thing you “think” you
can’t do without. Think about each purchase carefully and question
yourself if you can afford this expenditure, what is the best way to pay
for it and when can you repay the credit card you used to buy it. You
should only make credit card purchases on things that you can fully
repay within 30 days. Get out of the habit of racking up interest debt.
Don’t destroy and cut up your cards, just start using them
intelligently. Occasionally, when you get a few extra bucks, throw some
money on the cards and get them paid down. You credit score will begin
to improve.
Pay your bills on time. This is important. When a bill comes in the
mail, put in a location where you won’t forget about it or loose it.
Those little mail sorting containers you may have seen hanging near a
front door or kitchen inside a friends home are a great way to keep all
that stuff together. In addition to that, another great tip is to make a
habit of paying those bills once a week, whenever it is convenient to
you. You’ll never miss another payment and your credit score will love
you for it. No more late payment black marks on your bureaus.
Don’t skip payments. When credit card companies call you and offer you a
“grace period” on your payments, you should refuse those offers. I know
you could use the few additional bucks gained by missing a few payments
but just stay away from that kind of offer. You are trying to change
your credit habits and that kind of thing is for individuals who are not
in control of their money and spending behaviour. Like I mentioned in a
previous paragraph, make at lease the minimum payment and throw in some
extra bucks of you can. You cards won’t get paid down skipping payments.
Don’t do it.
Pay the most money you can every month. Yes, you can just make the
minimum balance but you should work hard to pay off those darn cards.
Make it your mission. A little suffering now will pay off so much for
you later on, you won’t believe it. Imagine when you finally get that
bad credit debt paid off and you no longer have to throw money away
every month making those payments. You then get to start saving money in
the bank. What a concept! Getting ahead instead of behind!
Try to maintain a low balance. Like I mentioned above, if you can’t
repay it in 1 month, don’t buy it on your cards. Of course, should you
have no choice, such as the case in an emergency situation, like having
to replace a fridge of hot water heater, do what you must, but
definitely try to pay it back as soon as you can. Get that frame of mind
set firmly in your head – pay off cards – pay off cards. Make it your
mission!
Avoid credit bureau inquiries like the plague. When you go around town
looking to get credit accounts for this and that, cars and furniture for
example, it makes you look desperate to borrow money and beats up your
credit score. You want to avoid this practice and only apply for credit
when you know for sure you need it and will use it, wisely. A few times
a year is ok. Ten times a month is not ok.
Keep your active credit card number to 2 to 4. This should be enough
credit cards for anybody responsible and will report enough to better
your score with responsible usage. Pay off and cancel any credit
accounts above that. If you think about it, you’ll realise you really
don’t need 10 credit cards after all. Another related tip, if you have
the choice, keep the oldest accounts you have active. Older established
credit is better. You might also want to contact those older creditors
and request lower rates. They should be happy to oblige, if they can, to
keep you as a customer.
Don’t be afraid to contact your creditors.
Should you get in financial
trouble, give them a call and let them know what’s going on. They’ll
appreciate that. They’ll work with you to get you through your
situation. You want them to know that you actually care as opposed to
most people who avoid them and ignore their phone calls. Heck, who
knows, by being honest, you might actually even avoid them getting the
collection agencies involved, which is a good thing, trust me.
Collection agencies wreck credit bureaus.
Stick to these tips. Your credit bureau will prosper. Remember that
there is nothing complicated here. Yes, these ideas might be new to you
and feel weird at first, but they’ll become second nature soon enough
and you will soon enjoy life as a citizen with great credit. Even
getting a mortgage for that new home will be a piece of cake!
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