Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. You can reverse the effects of these actions though.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
Good credit scores mean you can easily qualify for a home or car loan. Staying current with your mortgage payments is a way to raise your credit score even more. When you are a home owner you will be financially stable based on what you own. Financial stability is important should you need a loan.
Try opening an installment account. With this sort of an account, you need to keep a minimum. If you use one of these types of accounts, your score will quickly improve.
You can lower your debt by refusing to acknowledge the part of your debt that has been accrued by significantly high interest rates. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. However, you agreed to pay the interests off when you signed the contract. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
If you want to fix your credit it can seem like a lot to handle, if you work hard you can do it the right way. Use what you’ve learned in this article to start fixing your credit and improve your credit score.