There are many things you can do to improve your credit score and you don’t even need to pay expensive fees to credit repair companies. Companies that offer to repair your credit for you are counting on the fact that you do not realize that there is nothing they can do for you that you cannot do for yourself, for free. In fact, there are things you can do on your own to help start fixing your credit today. |
Know Your Starting Point
Before you begin, you’ll need to know exactly what your current score is. You can order copies of your credit report from any of the major reporting bureaus. Once you know what’s been listed on your report and you know your score, you can begin working towards improving it. Make sure you get a separate copy from each of the three major credit reporting bureaus, since they may be different and you need to be sure that you know what each of them is saying about you.
Correct Any Mistakes
Frequently companies list items incorrectly or things end up on your report when they may have been intended for someone with the same name as you. This is more common than you might think. What this does is lower your credit score because you are shown as having more outstanding risk than what might be yours, or the incorrect account on your report may be severely delinquent. If you see something listed on your report, call the company who listed it. That company is obliged to respond to your query within 30 days and rectify the listing if necessary.
Call Existing Creditors
If you’re already behind on any existing debts, it’s important that you call your existing creditors immediately and notify them of your intention to catch up any late payments. The act of contacting them goes in your favor, but the payment plan you agree to can actually help the creditor to understand you’re doing all you can to make amends. This will be reported favorably.
When trying to improve credit, it’s important to understand how a bank views your repayment history. The majority of bank computer systems calculate interest charges and fees on a daily basis but don’t show them on your statement until the end of each month.
By dividing your total monthly payment by 4 and paying your bill weekly instead, the bank is still receiving the amount they wanted by the end of the month, but you have the benefit of more frequent payments showing on your account.
More frequent payments can improve your credit score as it shows lenders that you’re serious about trying to catch up any past-due payments.
This also means the more often you can make a payment the less compounding interest can accumulate on your account by the end of the month, which drops your overall interest charges.
Take a close look at the statements for all your existing accounts and bills. You’ll find some have much higher interest charges than others. These high interest charging accounts are the ones you’ll want to try and clear first as they’re costing you the most money. Once again, call the company in question and try to negotiate for a lower interest charge. If they won’t negotiate, call another lender and see if they’ll refinance the outstanding balance to a lower interest rate. This will help reduce your monthly cash flow, making it easier to meet your other obligations.
When a bank or lender assesses your credit, they look at the total amount of credit available to you. If you have any credit cards with unused limits on them, consider reducing your limit. By lowering your total available debt, it can appear you’re making an effort to fix your situation
This tip won’t actually improve your credit score, but you should make sure you hold your chin high and be proud. We all make mistakes – but we don’t all take action to get things back on track. You should be proud that you’re taking positive action to improve your situation in a positive manner. For more insights and additional information on things you can do starting today to Improve Credit Score as well as being able to get free copies of your credit reports from the major credit reporting bureaus, please visit our web site at http://www.credit-help-center.com
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