How To Avoid A Bad Credit Score

By Bruce Hammack


If you knew how much you owed and who you owed it to, you may have been able to avoided bad debt entirely. The time has come to fix your credit score with a little positive crisis management. Follow this advice to improve your credit score quickly.

If your credit card has a balance of over 50% of your limit, it should be your number one priority to pay it off until the balance is under 50%. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.

When you have better credit, you will be offered lower interest rates on loans and credit cards. Lower interest rates mean lower payments, which allows you to pay off debt faster. Try to get the best offer and credit rates so you can increase your credit score.

One of the first steps of improving your credit score is ensuring that your bills are always paid and recorded in a book keeping software if possible. You should pay your bills in full each month. Do not let them fall behind again and get yourself in trouble. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.

Make sure you do your research before deciding to go with a particular credit counselor. While there are lots of counselors with your best interest at heart, there are others who just want your money. Other programs, while they sound good, are complete and total scams. Before you conduct any business with a credit counselor, check into their legitimacy.

Don't risk prison. Don't buy into scams that suggest you create new credit files. Do things like this can get you into big trouble with the law. Think of the legal costs and the possibility of doing hard time.

Before you agree to any sort of repayment plan to settle your debts, consider how this will affect your credit score. There are ways that are less damaging than others, that is why it is important to research about it before starting an agreement with creditors. Remember creditors want their money. They really don't care about your credit scores. That is up to you to protect.

Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. Errors are not infrequent in credit reports. If you can prove the credit bureau is in the wrong, they should correct the reported error or remove it entirely.

You may want to justify yourself, but the statement has no effect on whether a lender will extend credit to you or not. It is irrelevant. The statement will only draw further attention to negative reports on your credit history.

Easy tips, like the ones in this article, will help you repair your credit and keep it healthy in the future. Because a good credit rating is important in so many financial transactions, the time you spend learning about credit repair is well-spent.




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