It can be stressful to have to deal with a negative credit score. It can be frustrating when you think back on all the poor credit decisions you made in your past. It is time to deal with your debt and get back on the road to good credit. Get ready to rebuild your credit with the following proven tips.
Don’t apply for credit cards or other accounts over and over again until you get approved for one. Each time your credit report is pulled, it temporarily lowers your score just a bit. This lowering will go away in a short period of time, like a month or so, but multiple pulls of your report in a short period of time is a red flag to creditors and to your score.
If you know that you are going to be late on a payment or that the balances have gotten away from you, contact the business and see if you can set up an arrangement. It is much easier to keep a company from reporting something to your credit report than it is to have it fixed later.
Before signing up with a credit repair counselor, be sure they are a legitimate company. There are many scams that exist in order to take advantage of desperate people in serious debt. Read the reviews from other customers and the company’s listing with the Better Business Bureau before signing anything with a credit repair counselor.
An important tip to consider when working to repair your credit is the added incentive that you will not have to pay a large security deposit when starting up utilities at a new residence. This will help to save your immediate out of pocket costs and give you more money to work off your debt.
If you are trying to repair your credit score, don’t be afraid to open new accounts that you qualify for. Opening a new account, such as a secured credit card, and then maintaining that account in good standing shows creditors that you are trying to move forward. If the only accounts on your credit report are in poor standing, of course your score will be lower.
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 and when you pay off a creditor, make sure to keep a copy of the statement or receipt that says you are paid in full. Having this will be necessary if the creditor fails to report it to the credit bureaus. You can then send it in with a letter to the credit bureau and have the information changed to reflect that the account is paid off.
You have a long way to go to get the credit score you want from the advice you got here. Most importantly, you want to have a consistent plan and stick to your commitments. It is time to put some time and efforts into this project. Keep in mind that you will be rewarded.