Advantage of Bad Credit Loans On
Knowing how much was owed, as well as to whom, could have helped you avoid the downgrading of your credit score. Now it is time to figure out how to resolve the problems and create a better future. The following advice can help you easily repair your negative credit.
Repairing your credit isn't something you can do overnight, but the best way to fix it is to slowly raise it back up. Prepaid credit cards are one way in which you can repair your credit. These cards are used like a normal credit card and are reported to the credit bureaus; however, you can only use the amount of money you deposit into your account. This approach will indicate to others that you are serious about taking responsibility for your financial future.
Keep your bad credit loans in your wallet. Pay for everything with cold, hard cash. Pay off any credit card purchases immediately.
If you want to repair your credit, an effective starting point is to contact a credit counseling agency. They can help teach you tricks that will help you get out of debt and still live every month. Be prepared to buckle down on your spending and to make significant payments every month.
Keep a record of all correspondence with the credit agencies so you can have all inaccurate information taken off your credit report. Meticulously document every single contact, whether it's snail mail, email, or phone calls. When you mail a dispute letter, certify it; this will give you proof of mailing and of it being received.
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. There are laws that protect you from creditors that charge exorbitant interest rates. On the other hand, you're likely bound by a contractual agreement to pay any interest charged by lenders. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
Any of your credit cards with balances that are above 50% of your overall limit need to be paid off as soon as possible, until the balance is less than 50%. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.
You may want to argue against the reports, but potential lenders will not take your statements into consideration