In this economy, it is very common for everybody to need to repair their credit. Whether it needs a little fixing or very extensive work, you can follow these guidelines to get it where it needs to be and get going again.
Check Your Credit Report
First you need to check your credit report. This will enable you to view your credit score. Your credit score determines what interest rates you are charged on loans and credit cards. The better your score the lower these rates will be. It can take some time to improve this score, but don’t get discouraged it will happen over time. Check your credit report regularly for changes.
What Accounts Can Be Paid Late
As you look over your budget, look for accounts that can be paid late without affecting your credit report. These may include utility bills such as gas, electric, and cable bills. Although it is okay to pay these late do not make a habit of it as it could cause a suspension of service or cancellation Other bills could include health and life insurance. These, however, would have to be paid before the grace period ends. Use this method only when you need to postpone bills because of low income or hardship circumstances.
Screen Your Credit Report For Negative Items
Look carefully at your credit report for any negative information that would impact your credit score. This could include many things. Unpaid medical bills, too many accounts, closed accounts or too many inquiries. These items would decrease your credit score and effect your rating for many things such as jobs, apartments and loans. Find these negative items and inquire about them or have them deleted if at all possible.
Research The Collection Laws Concerning Your Credit Cards
Many states have different laws concerning the collection of your credit cards. Familiarize yourself with your states laws and abide with them. Some states have laws as to when they can call you to collect money. These include that they cannot call you at work or during the day. The credit cards also have to abide by many federal laws as well. Make sure you are familiar with both the state and federal laws regarding your credit cards.
Keep Your Credit Card Balances Low
One of the best ways to keep your credit score up, is to keep your credit card balances low. The rule of thumb in this is to keep them below thirty percent. This show that you use your credit wisely and you are not a risk for people are loaning to you for cars, homes and other loans. It also makes it easier for you to pay your bills on time and quicker.
In conclusion, if you use these tips you will be a winner in the credit game. These tips are easy to follow and you do not need someone to help you to do them. Your success is guaranteed if you follow these tips carefully. So let’s begin are road to better credit.