It can be stressful to deal with having bad credit. Poor choices in your past can really come back to haunt you. Rebuilding credit may be challenging, but it is not impossible. Read this article for some strategies that can help.
Look for missed payments or other unsettled debts on your credit report. First check for any mistakes that may have been made, and then take action to remedy your past errors. Debt with high interest needs to be paid off first while paying the minimum for all of the other accounts.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.
You should make an effort to pay off past due accounts and accounts that have gone to collection. While this will not remove the debts from your credit report completely, they will be showing as paid and no longer negatively affect your rating.
Before going into debt settlement, find out how it will affect your credit score. Some settlement agreements can actually be bad for your credit score, so be wary and do your homework. Most of the time they want their money and don’t care about your credit score.
It is not legal for collectors to threaten you, so always report them if they get too aggressive. Consumers have protection laws that are crucial to be aware of.
It is crucial that you review credit card bills on a monthly basis to check for errors. If there are mistakes, call the company. If the errors are not fixed, they could get reported to the major credit rating agencies.
Keep your credit cards in your wallet. Do all of your spending with cash or debit cards. If you absolutely have no other choice but to use a credit card, pay off the balance in full as soon as possible.